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Purchasing Power of Non-Monetary items such as inventory and NCAs

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Purchasing Power of Non-Monetary items such as inventory and NCAs

  • This topic has 1 reply, 2 voices, and was last updated 3 years ago by P2-D2.
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  • Author
    Posts
  • July 26, 2022 at 7:01 am #661878
    tabasumze
    Participant
    • Topics: 40
    • Replies: 48
    • ☆☆

    Please explain what does the following explanation given in Kaplan study text means

    The owner’s of a company’s equity capital have the residual claim on its net monetary and non monetary assets. The equity interest is therefore neither a monetary nor a non-monetary item.

    July 28, 2022 at 8:22 pm #662029
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7231
    • ☆☆☆☆☆

    Hi,

    I’d not worry about it but all it is saying is that the equity is equal to the net assets and that net assets are made up of monetary and non-monetary assets. There isn’t anything more to it than that.

    Thanks

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