IAS 7 Flashcards
1
Q
How does IAS 7 define cash equivalents?
A
IAS 7 defines cash equivalents as short term, highly liquid investments that are readily convertible to a known amount of cash and which are subject to an insignificant risk of a change in value
2
Q
What is an example of readily convertible to cash IAS 7?
A
A short maturity of three months or less from the date of acquisition
3
Q
What are cash equivalents?
A
Held to meet short term cash commitments. They arenotheld for investment purposes
