Cash Flow.
This query is : Resolved
30 July 2010
I want to Know whether FDR which are on lien are included in Cash Flow(Cash and Cash Equivalent) or not ?
30 July 2010
Hi Jigar,
It should be included.
The FDR belongs to the owner despite the same is on lien. The loan, if any, received using the FDR will be a financing cash in flow
It should be included.
The FDR belongs to the owner despite the same is on lien. The loan, if any, received using the FDR will be a financing cash in flow
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Aditya Maheshwari
(Expert)
30 July 2010
No they are not to be included in cash and cash equivalent as it is not liquid funds.
Aditya Maheshwari
(Expert)
30 July 2010
Dear Thrissurkkaran Ishtan
Cash equivalents are short-term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.
The above is not highly liquid investment.
Cash equivalents are short-term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.
The above is not highly liquid investment.
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30 July 2010
Dear Aditya,
Thanks for clarifying.
In that case, would they be included, if the same is held lien for short term loans?
Thanks for clarifying.
In that case, would they be included, if the same is held lien for short term loans?
Aditya Maheshwari
(Expert)
30 July 2010
IF the FD is going to mature in a short period of time say 3 months then it is generally taken in cash & cash equivalents i. e. if the same is held lien for short term loans.
If long term loan then definately not in cash & cash equivalents.
If long term loan then definately not in cash & cash equivalents.
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