Cash and cash equivalents

From ACT Wiki
Revision as of 13:08, 10 August 2021 by imported>Doug Williamson (Update link.)
Jump to navigationJump to search

Financial reporting - balance sheet - assets.

(CCE).

For financial reporting purposes, cash equivalents are:

  • Short-term, highly liquid investments that are
  • Readily convertible to known amounts of cash and
  • Which are subject to an insignificant risk of changes in value.


Examples of cash equivalents for financial reporting purposes include money market instruments, treasury bills, short-term government bonds, marketable securities and commercial paper.


Cash and cash equivalents are normally reported as a single aggregated figure in the primary statement of financial position.


See also