04 October 2012
As per Clause 6Q of part 1 of the revised schedule VI of the Companies Act,1956, companies have to classify bank deposit under the head 'Cash and Cash Equivalents'. Further separate disclosure is required for those bank deposits with > 12 months remaining maturity period.
05 October 2012
Schedule VI tells the presentation and AS prevails over schedule VI. And according to AS, "Investments are assets held by an enterprise for earning income by way of dividends, interest, and rentals, for capital appreciation, or for other benefits to the investing enterprise." It means any asset held for earning interest is investment. So bank deposit also qualifies as investment.
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