Fixed deposit
This query is : Resolved
VIVEK SINGH
(Querist)
27 October 2012
what is the accounting treatment of FD. CAN I TREAT IT AS CASH & CASH EQUIVALENTS UNDER BANK ACCOUNT OR TREAT AS INVESTMENT AND CLASSIFIED AS CURRENT AND NON-CURRENT ASSETS AS PER REVISED SCHEDULE VI
28 October 2012
Please consider under current and non-current assets.
29 October 2012
Hello,
The term cash and cash equivalents have been defined in AS-3 and therefore the interpretation should be drwan from this AS 3 for the purposes of revised Schedule VI as well. Accordingly, the Fixed Deposits with a bank that have a maturity of less than 3 months from the date of acqusition should be treated as Cash and Cash Equivalents. Other Fixed Deposits should continue to be treated as Other Deposits with the banks.
Trust this helps
The term cash and cash equivalents have been defined in AS-3 and therefore the interpretation should be drwan from this AS 3 for the purposes of revised Schedule VI as well. Accordingly, the Fixed Deposits with a bank that have a maturity of less than 3 months from the date of acqusition should be treated as Cash and Cash Equivalents. Other Fixed Deposits should continue to be treated as Other Deposits with the banks.
Trust this helps
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