Monetary vs. non-monetary items
(a) In Dec 01, entity E delivers merchandise to entity F. Hence, E recognizes a trade receivable.
(b) On Dec 31, 01, merchandise is stored in E”s warehouse.
(c) On Dec 01, 01, E pays the rent for a machine rented under an operating lease for the period Dec 01, 01 to Feb 28, 02 in advance. The rent is CU 1 per month. Correctly, E makes the following entry:
|
1-Dec-01 |
Dr |
Deferred expense |
2 |
|
|
Dr |
Expense |
1 |
||
|
Cr |
Cash |
3 |
(d) E holds 3% of the shares of entity G.
(e) E has recognized a deferred tax liability in its statement of financial position.
Required
Determine whether the bold items are monetary or non-monetary items in E”s financial statements as at Dec 31, 01.
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