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What do cash & cash equivalents include?


We have $50,000 two-year fixed deposits maturing in 02 months time from the date of our balance sheet. Should we categorize these as cash & cash equivalents?

asked Feb 23, 2013 in IAS 7 - Statement of Cash Flows by anonymous
edited Feb 23, 2013 by AndyK

1 Answer

0 votes
Cash equivalents include demand deposits and short term investments which have less than 03 months maturity period  from the date of acquisition. your deposit, although maturing in 02 months from the balance sheet date, is not a cash equivalent since it was a two year fixed deposit.
answered Feb 23, 2013 by AndyK Level 2 Member (3,850 points)


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