I am not sure what is the rationale behind using temporal method and the idea of seperating assets between monetery and non-monetery. I guess what this is saying is that firms are not exposed to fx movement for the non monetery assets which are normally assets measured in cost, because for them at the moment of purchasing the cost is set as long as the firm is concerned because the firm meansures stuff in functional currency, whatever local price paid is in the view of the management a set price in its functional currency.
Does anyone have some insight on this?
Does anyone have some insight on this?