Accountancy Forum
  • Accountancy
  • Forum Home
  • Members
  • Team
  • Help
  • Search
  • Register
  • Login
  • Home
  • Members
  • Help
  • Search
Accountancy Forum The Profession Accounting and Audit v
« Previous 1 … 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 … 28 Next »
Mutual Funds

 
  • 0 Vote(s) - 0 Average
Mutual Funds
Greatkhans
Offline

Member

Posts: 82
Threads: 11
Joined: Dec 2009
Reputation: 0
#3
02-21-2010, 02:34 PM
Hi Kamran,

You are very right.


Cash equivalent has been defined in IAS 7 Para 6 Short-term, highly liquid investments that are readily convertible into known amounts of cash and that are subject to an insignificant amount of risk of changes in value.

Cash equivalents are held by the entity for meeting short-term commitments. The true meaning of cash equivalents can be best understood by analyzing the definition given by the Standard. According to the definition, cash equivalents are required to possess these two attributes

(a) They should be “short term” in nature; that is, they are held for meeting short-term cash commitments. In other words, an investment normally qualifies as cash equivalent only if it has a short maturity, say, three months or less, from the date of acquisition.

(b) They should be “highly liquid investments” that are “readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value.”

Most of our juniors are also confused about the definition of cash, which is

Cash Comprises cash on hand and demand deposits with banks.

Demand deposit means, it is free from any lien, encumbrance, charge, restriction etc.

Regards,

GREAT KHANS
« Next Oldest | Next Newest »

Users browsing this thread: 2 Guest(s)



Messages In This Thread
Mutual Funds - by noor4794 - 02-20-2010, 07:06 PM
[No subject] - by kamranACA - 02-21-2010, 12:16 PM
[No subject] - by Greatkhans - 02-21-2010, 02:34 PM
[No subject] - by june23am - 02-21-2010, 08:48 PM
[No subject] - by kamranACA - 02-22-2010, 02:54 AM
[No subject] - by Greatkhans - 02-22-2010, 03:10 AM
[No subject] - by june23am - 02-22-2010, 05:10 AM
[No subject] - by Greatkhans - 02-22-2010, 08:23 AM
[No subject] - by june23am - 02-22-2010, 08:40 PM
[No subject] - by kamranACA - 02-22-2010, 09:15 PM
[No subject] - by june23am - 02-22-2010, 11:14 PM
[No subject] - by kamranACA - 02-22-2010, 11:37 PM
[No subject] - by june23am - 02-22-2010, 11:53 PM
[No subject] - by kamranACA - 02-23-2010, 01:56 AM
[No subject] - by noor4794 - 02-24-2010, 12:32 AM
[No subject] - by kamranACA - 02-24-2010, 02:27 AM

  • View a Printable Version
  • Subscribe to this thread
Forum Jump:

© 2002-2024 Accountancy. Copyrights of all content on this web site are owned by Accountancy except where indicated in source or copyright statements. Accountancy must be contacted for permission to copy or redistribute any material published on this website.

Linear Mode
Threaded Mode