Non-Monetary Item
Accounting glossary · Understand, connect, apply
A non-monetary item lacks a right to receive or an obligation to deliver a fixed or determinable amount of currency.
Example
A machine purchased in a foreign currency is non-monetary because the machine itself gives the business productive capacity rather than a claim to a fixed cash amount.
Remember the difference
Under IAS 21, a non-monetary item measured at historical cost uses the exchange rate at the transaction date. A fair value measurement uses the rate at the date that fair value was measured.
Browse the accounting glossary · Read the IFRS Foundation reference
Prepared with AI assistance. Examples are fictional and simplified for learning.
Examples are simplified for learning. Where a term depends on US law, IFRS, US GAAP or a historical rule, check the context explained above and the requirements relevant to your course.
Study references: OpenStax financial accounting and managerial accounting. For reporting requirements, consult the applicable IFRS Standards or FASB guidance. US tax terms should be checked against the relevant tax-year IRS instructions.
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