suraj sharma (student) (32 Points)
22 July 2013i am confuse regarding the treatment of foreign currenc exchange loss and gain in cash flow statement . plz sir explain the treatment of this issues.........
suraj sharma
(student)
(32 Points)
Replied 22 July 2013
while solving cash flow statement i found merely short term investment is treated as cash and cash equivalent in our practice manual and study material. i am confused about this. i understood merely short term investment is not cash equivalents as as per as 3 cash equivalents are thoes short term investment which are easily converted into amount of cash without decline of its value and having maturity period of three month or less .but in accountancy short term investment are thoes investment which is readily realisable and intended to be held for not more than one year from the date on which such investment is acquired.plz sir make my confusion clear.actually i am not taking any class so i am reading study material and pc tulsian books.and i found both books have done same treatment .
CA Kunal Mishra
(Consultancy Service)
(172 Points)
Replied 22 July 2013
CAclubindia
