Q4: Intangible assets need to be ‘non-monetary’. What does it mean to be ‘non-monetary’?
‘Non-monetary’ means that an item “does not have a precise value in terms of money. For example, Accounts receivable and Accounts payable are monetary assets because they have a precise monetary value; our customers owe us a precise dollar amount; or we owe our suppliers a precise dollar amount. For monetary assets and liabilities there is a right to receive (or obligation to pay) a fixed or determinable amount of money. For this reason, trade receivables and trade payables are not Intangible assets. Intangible assets and Goodwill are non-monetary assets; as also are many tangible assets such as Property, plant and equipment and Inventory.”
Study Guide Chap 5 page 5-18