02-22-2010, 05:10 AM
sir kamran
Can short term investment in Mutual funds which are classified as held for trading be considered Cash and cash equivalent.?
is't this the question? if yes than is what i was aksing why i cannot consider it cash equivalent when i am investing in a short term mutual funnd(Money market mutual funds, treasury bills, Certificates of deposit, and Bank money market accounts)? you are saying if i own a treasury bill or certificate of deposit or bank money market account neither by way of mutual fund than is cash equivalent but in case my investment through mutual fund is in these tools than i cannot?...even viewing it on going concern basis in case of a t bill what risk one have?
about open end mutual funds "Open ended funds can issue and redeem units any time during the life of the scheme, on NAV" ivesting in open ended mutual fund (money market mutual fund or treasury bill) which i know is backed by govt. no risk readily cash why should't i consider it cash equivalent?
great khan
what you are saying itself is that investment in mutual funds can be consider cash equivalent if it meets the requirments/conditions no matter where mutual funds invest it.. anyways rules/types/classes of mutual funds aint same in whole world, i should't be sticking up how investment are being through or mutual funds are in pakistan,these standards are not been made by our govt. we merely are follwoing them accounting/auditing/finance standards, so broad up the vision by looking at the whole world not just what i m doing at my place..i have read it even in a book i think "Advanced Financial Accounting An IAS and IFRS Approach
Pearl Tan (Author), Peter Lee (Author)
that investment in mutual funds short term securities are considered cash equivalent...will make sure to find a solid groud for this . jazakALLAH both of you
Can short term investment in Mutual funds which are classified as held for trading be considered Cash and cash equivalent.?
is't this the question? if yes than is what i was aksing why i cannot consider it cash equivalent when i am investing in a short term mutual funnd(Money market mutual funds, treasury bills, Certificates of deposit, and Bank money market accounts)? you are saying if i own a treasury bill or certificate of deposit or bank money market account neither by way of mutual fund than is cash equivalent but in case my investment through mutual fund is in these tools than i cannot?...even viewing it on going concern basis in case of a t bill what risk one have?
about open end mutual funds "Open ended funds can issue and redeem units any time during the life of the scheme, on NAV" ivesting in open ended mutual fund (money market mutual fund or treasury bill) which i know is backed by govt. no risk readily cash why should't i consider it cash equivalent?
great khan
what you are saying itself is that investment in mutual funds can be consider cash equivalent if it meets the requirments/conditions no matter where mutual funds invest it.. anyways rules/types/classes of mutual funds aint same in whole world, i should't be sticking up how investment are being through or mutual funds are in pakistan,these standards are not been made by our govt. we merely are follwoing them accounting/auditing/finance standards, so broad up the vision by looking at the whole world not just what i m doing at my place..i have read it even in a book i think "Advanced Financial Accounting An IAS and IFRS Approach
Pearl Tan (Author), Peter Lee (Author)
that investment in mutual funds short term securities are considered cash equivalent...will make sure to find a solid groud for this . jazakALLAH both of you
