Page 333 - SBR Integrated Workbook STUDENT S18-J19
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Group statement of cash flows
Cash and cash equivalents
2.1 Definitions
Cash consists of cash in hand and deposits repayable upon demand,
less overdrafts.
Cash equivalents are ‘short-term, highly liquid investments that
are readily convertible to known amounts of cash and are subject
to an insignificant risk of changes in value’ (IAS 7, para 6).
A common exam question is to discuss whether an item meets the definition of a
cash equivalent.
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