Monetary asset

Cash and a trade receivable for a fixed amount of money are monetary assets. For a foreign-currency monetary asset, IAS 21 generally requires translation at the closing rate into functional currency at each reporting date; changes can create exchange differences. The item’s underlying measurement is determined by the applicable standard, so monetary assets are not all measured at fair value. An advance for goods is generally non-monetary because it gives a right to goods rather than a fixed amount of currency.