Cashable GIC

All topics related to IFRS Standards.
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Feryal24
Posts: 22
Joined: 13 May 2022, 17:29

Cashable GIC

Post by Feryal24 »

Hi all,

If I have a cashable GIC within 30, 60 or 90 days with a maturity term of 1 year would you consider that part of cash and cash equivalents or Term deposits on the FS?

Thoughts?
Leo
Posts: 544
Joined: 05 Apr 2020, 22:31

Re: Cashable GIC

Post by Leo »

What GIC stands for?
Feryal24
Posts: 22
Joined: 13 May 2022, 17:29

Re: Cashable GIC

Post by Feryal24 »

Sorry.. Guaranteed Investment Certificate
Leo
Posts: 544
Joined: 05 Apr 2020, 22:31

Re: Cashable GIC

Post by Leo »

Is it like a tracker or a fund? A financial asset but not sure it's classified as cash equivalent or not.
Feryal24
Posts: 22
Joined: 13 May 2022, 17:29

Re: Cashable GIC

Post by Feryal24 »

It is considered a fund that has zero risk. You are guaranteed your investment plus accrued interest. The thing is you don't have access to the cash let's say for 60 days and can accrue interest until the one-year maturity if the funds have not been withdrawn.
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Marek Muc
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Re: Cashable GIC

Post by Marek Muc »

If the maturity is 1 year it's a strong indicator that it's an asset held for investment purposes rather than for meeting short term cash commitments (hence not a cash equivalent)
Feryal24
Posts: 22
Joined: 13 May 2022, 17:29

Re: Cashable GIC

Post by Feryal24 »

Thank you. I would agree with your suggestion. Just wanted to get another view. Thank you again!
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