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What is the money measurement concept?

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Question added by Majid Wangade , Senior Accountant , KANTOUR LIMITED COMPANY ( Real Estate, Construction and Asset Management )
Date Posted: 2015/12/14
Zohair Haiderally
by Zohair Haiderally , Vice President , Copal Amba (Moody's Analytics Company)

Money measurement concept is where we only account for items that can be measured in monetary terms......hence when accounting for costs, we wont account for non-monetary items.

 

Monetary is something that is related to money or currency. Non-monetary is the opposite and usually means that something can't be expressed in financial terms. 

 

Eg Your computer has a monetary value (ie what it costs or is worth in financial terms) and it can also have a non-monetary value (ie how much you like it or sentimental value).

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