Amit Kumar Verma (CA Final CS Professional) (501 Points)
03 December 2012Please tell where Bank FDR will be shown in Revised Schedule VI. It will be maturing after 3 years.
Thanks
CA Parul Saxena
(CA)
(8488 Points)
Replied 03 December 2012
ANAND S
(student)
(162 Points)
Replied 03 December 2012
but cash and cash equialents is current assets and one of the rule for current asset is need to liquidate with in 12 month from balance sheet date so if 3 years FDR means can we put on cash and cash equilents sir kindly clarify
praveen
(Chartered Accountant)
(6971 Points)
Replied 03 December 2012
my view is though FD will take three years to convert in to cash it can easily be convered to cash hence you can show it under cash and cash equivalents only.
praveen
(Chartered Accountant)
(6971 Points)
Replied 03 December 2012
my view is though FD will take three years to convert in to cash it can easily be convered to cash hence you can show it under cash and cash equivalents only.
Yogesh Bhandari
(CA FINAL Student)
(429 Points)
Replied 03 December 2012
| Originally posted by : praveen | ||
 |
my view is though FD will take three years to convert in to cash it can easily be convered to cash hence you can show it under cash and cash equivalents only. |
 |
Correct...
CA Pooja Agarwal
(Chartered Accountant)
(3228 Points)
Replied 04 December 2012
it has be shown under cash and cash equivalents as follows:
| Cash and cash equivalents |
| Balance with banks on current accounts |
| Cash on hand |
| Other bank balances : |
| Deposit with original maturity of more than one year |
| Margin money deposit accounts |
| Amount disclosed under non-current assets |
CA Suryakant Dubey
(CA )
(931 Points)
Replied 04 December 2012
It Will be Showned Under Cash & Cash Equivalents...if Fd is of 1Year or less...............
CA ABEY ABRAHAM
(FINANCE)
(62 Points)
Replied 04 December 2012
We can take bank fd with maturity of 3 years under "other non current asset.",because bank fd with 3 years maturity hasnt fulfil the conditions of cash equivalent as per AS-3.Conditions as per accounting standard prevails schedule 6.....
Anuj jain
(CA Final Student)
(163 Points)
Replied 04 December 2012
it will be shown under the cash & cash equivalent because as per revised shedule VI, the whole assets are devided into two categories i.e. current and non-current. As per the guideliness 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.
Archit Goyal
(Learning Professional)
(344 Points)
Replied 04 December 2012
CAclubindia
