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Cash and cash equivalents
Accountancy
Does short term bank deposit (2-3 months ) considered as cash and cash equivalents or current investment because it is also qualifying the defination of investment as per AS-13
Answers (8)
Kamal Kumar
Yes it is investment but can't be cash and cash equivalents because while encashing it may vary significant value which is violate AS3
Why value may vary as bank deposit are very less risky
Thread Starter
Atharv SankliyaWhy value may vary as bank deposit are very less risky
E.g if u deposit more money in a bank and if u withdraw after 8 or 9 months u will get interest as return on investments and it should considered separately because it is investment not ur idle cash as it is.
CA Suraj Lakhotia Admin
Refer AS 3
In book cash deposit in 60days not considered as cash and cash equivalents or not consider movement of cash. Also the period <=3m for securities only.