Archive / 1.01 Cash

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Non-monetary assets and foreign currencies

Say that you acquired an asset, a printer for an example and the price was paid in foreign currency as opposed to your functional currency. It is perfectly normal for such transactions to take place and as a matter of fact there’s nothing complicated about it.  (more…)

Monetary balances nominated in foreign currencies

Your everyday accounting may likely include balances that you’re essentially required to settle in some foreign currency (that is different currency than you’re using in your everyday accounting).  (more…)

Transactions in foreign currencies

Transactions take place in foreign currencies, there’s nothing wrong about it. There’s in fact nothing uncommon about it. It is just about knowing what to do and when to do it.  (more…)

Cash and cash equivalents

What is defined as cash and cash equivalents? Cash is cash and it’s easily understood – it’s the funds you have available to be used right away, whether they’re actual cash amounts you have physically available or bank accounts, which in this sense would classify as ‘equivalents’.  (more…)

Segregation of duties with bank payments

When it comes to bank payments and someone else doing them or you being in control of bank payments in someone else’s company, surely you’d want someone to also review the payments. Bank is an entity holding the company’s funds and as they’re used, the company is giving away its resources – being responsible for […]

Deposit accounts with banks – disclosure on the statement of financial position

Deposits in banks are tricky when it comes to disclosing them on the statement of financial position or balance sheet. There are different types of deposits and it may very well that there are different types used in your company alone. Factors to be considered when deciding whether the deposit is in fact a cash […]

Deposit account

Your cash is deposited on a bank account but is it an ordinary account or is part of a deposit account? Matter of fact is that a deposit is something that earns you a bit more than an ordinary bank account. Managing a deposit account however means two things:  (more…)