monetary

Examples of monetary in the following topics:

• Involuntary Conversion

  • Unlike a voluntary sale, involuntary conversion of assets can involve an asset exchange for monetary or non-monetary assets .
  • Monetary assets consist of cash or cash-equivalent assets.
  • Non-monetary assets are not easily converted to cash, such as equipment.
  • An exchange between non-monetary assets should be analyzed to determine if the exchange has commercial substance.
  • For non-monetary asset exchanges without commercial substance, the expectation is that the exchange will not materially alter future cash flows.

• Characteristics of Intangible Assets

  • Intangible assets are identifiable non-monetary assets that cannot be seen, touched, or physically measured.
  • Intangible assets are defined as identifiable non-monetary assets that cannot be seen, touched or physically measured, and are created through time and effort.

• Revenue

  • Revenue refers to the receipt of monetary value from the sale of goods or services and other income generating activities.

• Types of Transactions

  • The amount recorded is the actual monetary value of the transaction, not the list price of the merchandise.

• Analyzing Intangible Assets

  • Intangible assets are defined as identifiable non-monetary assets that cannot be seen, touched or physically measured.

• Fundamental Concepts in Accounting

  • Money Measurement, accounts only deal with items to which monetary values can be attributed.

• Reporting Cash

  • Cash is reported on the balance sheet at its current monetary, or fair, value to accurately reflect the entity's value on the statement. .

• Introduction to GAAP

  • Monetary Unit Principle: assumes a stable currency is going to be the unit of record.
  • The FASB accepts the nominal value of the US Dollar as the monetary unit of record unadjusted for inflation.

• Introduction to IFRS

  • Financial capital maintenance in nominal monetary units, i.e., globally implemented Historical cost accounting during low inflation and deflation only under the traditional Historical Cost paradigm
  • Stable measuring unit assumption: financial capital maintenance in nominal monetary units or traditional Historical cost accounting only under the traditional Historical Cost paradigm.

• Terminology of Accounting

  • Intangible assets are identifiable non-monetary assets that cannot be seen, touched or physically measured, are created through time and effort, and are identifiable as a separate asset.