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Examples of Nonmonetary Items


A nonmonetary item is an item of financial statements (of an entity) that is not a monetary item– that is, it cannot be quickly converted to cash or cash equivalents (or monetary assets), and its value is subject to changes due to external factors beyond the control of an entity. Nonmonetary items care classified as nonmonetary assets and nonmonetary liabilities.

Examples of nonmonetary items include physical assets such as machinery and equipment (generally PPE). These items are nonmonetary because their value generally changes (decreases) over time, either with usage (and corresponding depreciation effect) or obsolescence. Likewise, inventory is a nonmonetary asset because it can lose its value or part thereof due to obsolescence. Other examples are patents, goodwill, buildings, etc.

Generally speaking, any items that are not monetary in nature do belong to the categories of nonmonetary items.



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