Question

XYZ Ltd. classifies bank overdraft under 'Cash and Cash Equivalents' in the balance sheet. The overdraft is repayable on demand and regularly fluctuates from credit to debit. Is this correct as per Ind AS?

A Yes, if it’s an integral part of cash management
B No, it should be a financial liability
C Yes, if sanctioned limit is over ₹1 crore
D No, unless secured by assets
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