IFRIC finalises agenda decision – Demand deposits with restrictions on use arising from a contract with a third party

In accordance with the Due Process Handbook, the IFRS Interpretations Committee has finalised an agenda decision: Demand deposits with restrictions on use arising from a contract with a third party.

The agenda decision sets out the IFRIC’s view about whether an entity includes a demand deposit as a component of cash and cash equivalents in its statements of cash flows and financial position when the demand deposit is subject to contractual restrictions on use agreed with a third party. 

The full agenda decision may be accessed as a BDO IFRS FAQ.