the amount of cash and cash equivalents held by the entity that is not available for use by the group should be disclosed, together with a commentary by management [IAS 7.48] * Added by Disclosure Initiative amendments, effective 1 January 2017. Let me tell you some other examples of restricted cash: Amounts pledged as collaterals to insurance companies – sometimes, when insurance companies cover just a portion of some risk, they require some cash to be pledged as collateral and often, this cash needs to be held at separate escrow account. In November 2016, the Financial Accounting Standards Board (FASB) clarified the presentation and disclosure requirements of restricted cash. The sample disclosures in this set of illustrative financial statements should not be considered to be the only acceptable form of presentation. It may turn out that instead of a mere disclosure, they should be reclassified to other assets. Not-For-Profit Entities Cash and investments – restricted disclosure. Restricted cash arises out of a management decision to set aside funds because of, say, a legal obligation such as a statute or court order, or based on contractual requirements. They are provided to aid the sector in the preparation of the financial statements. ILLUSTRATIVE NOTES DISCLOSURES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Revised – September 2012) These illustrative notes are a sample of what the Board may wish to disclose. See the illustrative note disclosures at the end of this report for examples of these requirements. This document provides a non-authoritative example of a possible presentation of a complete set of financial statements for a nongovernmental NFP that is not a health care provider under current GAAP. You will find sample IFRS statements of cash flows in our Model IFRS financial statements. College and University Example 1 Note X - Available Resources and Liquidity The University regularly monitors liquidity required to meet its operating needs and other contractual commitments, while also striving to maximize the investment of its available funds. flows in our consolidated statements of cash flows reflect net income. Include Temporarily Restricted Cash and Receivables? I have used a Standby Letter of Credit many times in lieu of providing a landlord with a sizable cash deposit which could be tied up for years. Disclosures will be required to explain the change during the period in total cash and the amounts generally described as restricted cash or restricted cash equivalents. Specifically, the amendments require disclosure of both quantitative and qualitative information about the availability of and how the NFP manages its liquid available resources to meet cash needs for general expenditures within one year of the balance sheet date. Ias 7 para 48, disclosure of restricted cash – accounts examples. Our financial reporting guide, Financial statement presentation, details the financial statement presentation and disclosure requirements for common balance sheet and income statement accounts.It also discusses the appropriate classification of transactions in the statement of cash flows, and addresses the requirements related to the statements of stockholders’ equity and other … The five areas include: (1) net asset classification, (2) cash flow statement, (3) investment returns, (4) long-lived asset approach for donor restriction release, and (5) enhanced disclosures. Certificate of Deposit as collateral for Bank's issuance of the LOC. Restricted cash balances should also be carefully examined against the definition of cash and cash equivalents. Entity A received an investment loan from a bank of $100 million. 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