• Register
Search Questions / Answers

Welcome to AccountantAnswer Forum, where you can ask questions and receive answers. Although you need not be a member to ask questions or provide answers, we invite you to register an account and be a member of our community for mutual help. You can register with your email or with facebook login in few seconds

Get AccountantAnswer App


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?
in IAS 7 - Statement of Cash Flows by
edited by

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.
by Level 2 Member (3.9k points)