Bank fixed deposit is investment or cash equivalent
This query is : Resolved
Manish Sharma
(Querist)
25 December 2014
Hi Guys,
Recently I got a query about Bank Fixed Deposit which is deposited for more than 12 months.
My query is that Bank FD is categorized as Non Current Investment or it is Cash or cash Equivalents under new Companies Act 2013 as per Schedule III in Balance Sheet.
Recently I got a query about Bank Fixed Deposit which is deposited for more than 12 months.
My query is that Bank FD is categorized as Non Current Investment or it is Cash or cash Equivalents under new Companies Act 2013 as per Schedule III in Balance Sheet.
CA R SEETHARAMAN
(Expert)
25 December 2014
It will be shown under the cash & cash equivalent because as per schedule III, the whole assets are divided into two categories i.e. current and non-current. As per the guidelines 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.
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CA R SEETHARAMAN
(Expert)
25 December 2014
It will be shown under the cash & cash equivalent because as per schedule III, the whole assets are divided into two categories i.e. current and non-current. As per the guidelines 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.
Message likes :
1 times
Ganeshbabu K
(Expert)
25 December 2014
Fixed deposits have a maturity of more than 12 months from balance sheet date needs to be classified as "NON CURRENT ASSET"
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Guest
Guest
(Expert)
25 December 2014
Fixed deposits need to be categorized in three places as per AS 3 and Schedule VI.
Cash and cash equivalents for FDs with maturity less than three months.
Current asset: Fixed deposits with maturity upto 12 months from date of Balance sheet
And rest as Non current assets.
Also, Cash and cash equivalents are to be shown under Cash and Bank Balances.
Cash and cash equivalents for FDs with maturity less than three months.
Current asset: Fixed deposits with maturity upto 12 months from date of Balance sheet
And rest as Non current assets.
Also, Cash and cash equivalents are to be shown under Cash and Bank Balances.
Message likes :
6 times
Guest
Guest
(Expert)
25 December 2014
Fixed deposits need to be categorized in three places as per AS 3 and Schedule VI.
Cash and cash equivalents for FDs with maturity less than three months.
Current asset: Fixed deposits with maturity upto 12 months from date of Balance sheet
And rest as Non current assets.
Also, Cash and cash equivalents are to be shown under Cash and Bank Balances.
Cash and cash equivalents for FDs with maturity less than three months.
Current asset: Fixed deposits with maturity upto 12 months from date of Balance sheet
And rest as Non current assets.
Also, Cash and cash equivalents are to be shown under Cash and Bank Balances.
Message likes :
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