Question

Tamarisk, Inc. owns the following assets at December 31, 2020:

Cash in bank savings account		$48,900		Chequing account balance		$30,000
Cash on hand		14,200		Postdated cheque from Carla Vista Co.		450
Refund due (overpayment of income taxes)		31,800		Cash in a foreign bank (CAD equivalent)		88,000
Preferred shares acquired shortly before their fixed maturity date		15,200		Debt instrument with a maturity date of three months from the date acquired		11,000

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Current Attempt in Progress

Tamarisk, Inc. owns the following assets at December 31, 2020:

Cash in bank savings account		$48,900		Chequing account balance		$30,000
Cash on hand		14,200		Postdated cheque from Carla Vista Co.		450
Refund due (overpayment of income taxes)		31,800		Cash in a foreign bank (CAD equivalent)		88,000
Preferred shares acquired shortly before their fixed maturity date		15,200		Debt instrument with a maturity date of three months from the date acquired		11,000

(a1)

If Tamarisk follows ASPE and follows a policy of including all possible items in cash and cash equivalent, what amount should be reported as cash and cash equivalents? (Do not leave any answer field blank. Enter 0 for amounts.)

Cash and cash equivalents under ASPE

$

(a2)

If Tamarisk follows IFRS what amount should be reported as cash and cash equivalents?

Cash and cash equivalents under IFRS

$enter Cash and cash equivalents under IFRS in dollars

Answer 1

Ans:

1. If Tamarisk follows ASPE and follows a policy of including all possible items in cash and cash equivalent, amount should be reported as cash and cash equivalents:

Particulars	Amount($)
Cash in Bank{ Savings A/c}	48,900
Cash on Hand	14,200
Chequing Account balance	30,000
Cash in a Foreign Bank	88,000
Debt instrument with a Maturity date of three Months	11,000
Cash and cash Equivalents Under ASPE	192,100

2. Under IFRS, preferred Shares acquired shortly before their fixed maturity date will be included in Cash and Cash Equivalents i.e. 15,200 therefore Cash and Cash Equivalents under IFRS would be (192,100+ 15,200)= $207,300