Bank fd in revised schedule vi

but cash and cash equialents is current assets and one of the rule for current asset is need to liquidate with in 12 month from balance sheet date so if 3 years FDR means can we put on cash and cash equilents sir kindly clarify

my view is though FD will take three years to convert in to cash it can easily be convered to cash hence you can show it under cash and cash equivalents only.

my view is though FD will take three years to convert in to cash it can easily be convered to cash hence you can show it under cash and cash equivalents only.

Originally posted by : praveen
	my view is though FD will take three years to convert in to cash it can easily be convered to cash hence you can show it under cash and cash equivalents only.

Correct...

it has be shown under cash and cash equivalents as follows:

It Will be Showned Under Cash & Cash Equivalents...if Fd is of 1Year or less...............

We can take bank fd with maturity of 3 years under "other non current asset.",because bank fd with 3 years maturity hasnt fulfil the conditions of cash equivalent as per AS-3.Conditions as per accounting standard prevails schedule 6.....

it will be shown under the cash & cash equivalent because as per revised shedule VI, the whole assets are devided into two categories i.e. current and non-current. As per the guideliness FD in a bank is a current assets and it will be shown under cash & cash equivalent. Years of maturity is immaterial for the purpose of recording FD in balance sheet.