the iasb issued the discussion paper preliminary views on financial statement presen 4375809

The IASB issued the discussion paper “Preliminary Views on Financial Statement Presentation” in October 2008, which discusses the treatment of cash equivalents, among other things. This was followed up in July 2010 with a “Staff Draft of Exposure Draft IFRS X: Financial Statement Presentation.” Instructions From the IASB website (, access the discussion paper and the staff draft of the exposure draft. Paragraph 3.14 of the discussion paper proposes that cash equivalents be “presented and classified in a manner similar to other short-term investments, not as part of cash.” Similarly, paragraph 118 of the staff draft of the exposure draft on financial statement presentation suggests that cash should “not include short-term investments regardless of their liquidity or nearness to maturity.” Why are cash equivalents currently grouped with cash on the statement of financial position? Why is the IASB proposing to segregate cash from cash equivalents? Do you agree or disagree with this proposed treatment? Why or why not? View Solution:
The IASB issued the discussion paper Preliminary Views on Financial

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