Monetary vs non-monetary items

7 min · IAS 21
01 · Concept

Translate using functional currency. Monetary items retranslated at closing rate with differences in P&L; non-monetary at historical rate.

  • 01Functional currency = primary economic environment.
  • 02Monetary items: closing rate, FX diff to P&L.
  • 03Foreign operations: translate to presentation currency, FX diff to OCI.