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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

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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)


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