Mutual Funds

[june23am]

yes you expalined it by telling me what cash equivalents are by giving the definition only nothing is been discussed about what was been asked. in my opinion short term investments in mutual funds can be considered cash equivalents, i agree close end mutual funds cannot be treated or doubted to consider as cash equivalent but investment in open ended mutual funds can be considered cash equivalent if they fulfil the criteria of cash equivalent (the definition) at the time of valuing investment in short term securities mutual funds market rate is to be taken of mutual fund, it just the matter of investment you cannot say it cannot be treated as cash equivalent.In case of Open End Fund, it is required to ascertain whether, these funds can be converted into cash when required into known amount of cash, if this is not the case then open end funds may also not be treated as cash equivalent, in the contrary, they may be considered as cash equivalent. jazakALLAH
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Greatkhans</i>
<br />Hi June23am,

I think Kamran and I,both have explained various aspects of the issue. If you have a different view then please follow what you think appropriate. We explained it in the light of IFRS, which is sufficient.

Regards,

GREAT KHANS
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