Monetary vs. Non-monetary assets

CFA Level II FRA
#1

All,

What’s the easiest way you guys have found to distinguish between Monetary and Non-monetary assets and liabilities? I know that the most commonly used accounts can be just memorized, but I wanted to better understand the concept.

For example, PBO would be non-monetary necessarily? How about Prepaid expenses?

Thanks

#2

I use this:

Moneraty assets : Cash, receivables, marketable securities.

Monetary liabilities : Payables, long-term debt, short-term debt / notes.

I didn’t see PBO as a monetary liability, however, don’t know what others have to say about this.

Prepaid expenses are assets that will be amortized, already paid, so unrealized gains or loses could exist; however nobody accounts this.