ADMN 3221H Chapter Notes - Chapter 7: Impaired Asset, Commercial Paper, Promissory Note
6 Nov 2017
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Reporting of cash: needs special attention in the case of the following, restricted cash, cash in foreign currencies, bank overdrafts, cash equivalents. If the restricted cash balance is material, must be segregated from regular cash for reporting purposes: classified as current or non-current assets depending on date of availability or expected disbursement, note disclosure of restricted cash is required. If restrictions exist on the foreign funds, those funds are reported as restricted. Bank overdrafts: overdrafts represent cheques written in excess of the cash account balance, overdrafts are reported as current liabilities (often reported as accounts payable, however, bank overdrafts may be offset against available cash in another account if. In general, bank overdrafts should not be offset against the cash account both accounts are at the same bank. Allowance for doubtful accounts receivable, estimates uncollectible amounts and adjusts the allowance for. If uncollectible amounts are highly immaterial, the allowance method is sometimes not used.
