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Under Ind AS 21, MONETARY ITEMS are:
AInventory
BUnits of currency held, plus assets and liabilities to be received or paid in a FIXED or DETERMINABLE NUMBER of units of currency (e.g. cash, trade receivables, trade payables, loans, bank balances)
CItems of property, plant and equipment
DEquity instruments
Answer & Solution
Correct answer: B. Units of currency held, plus assets and liabilities to be received or paid in a FIXED or DETERMINABLE NUMBER of units of currency (e.g. cash, trade receivables, trade payables, loans, bank balances)
Monetary items are the essential subset: cash + items to be settled in fixed/determinable currency units. Non-monetary items (PP&E, inventory, intangibles, equity investments) lack the fixed-currency settlement feature. Distinction matters for subsequent measurement and exchange-difference treatment.
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