FR - Cash & Cash equivalent

Question 1

When IFRS, where do you find in the Handbook for Cash and Cash equivalent

Answer 1

IAS 7 - Statement of Cash Flow

Question 2

What is stated as Cash

Answer 2

It is what you have on hand or demand deposit

Question 3

Provide 2 examples of cash for a business

Answer 3

Legal tender on business premises,
Deposit made at the bank such as a cheque
Foreign currency that can easily be converted into cash

Question 4

What is a cash equivalent

Answer 4

A short-term term highly liquid investment that can easily be converted into cash

Question 5

Provide 2 examples of cash equivalent

Answer 5

Term deposit
Money investment funds
Treasury bills

Question 6

Provide 3 examples of exclusion of cash

Answer 6

1. Restricted funds - funds that can’t be used for restricted usage
2. Foreign currency is not easily converted to operational currency
3. Equity investment (shares) including publicly traded shares

Question 7

What is the difference between IFRS & ASPE for cash & cash equivalent

Answer 7

IFRS has one difference in which redeemable preferred shares, a maturity date of three months or less would be considered a cash equivalent. ASPE does not