Cash and cash equivalents

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Financial reporting - balance sheet - assets.


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 (balance sheet).

See also