Other Contractually Restricted Cash
Code: 1126
👁 Views: 136
Account Information
| Financial Statement | Statement of Financial Position |
| Normal Balance | Debit |
Definition
Cash balances subject to contractual restrictions that limit their use for the entity’s general purposes and that are not classified under the other specific restricted cash accounts.
Common Journal Entries
Maintaining minimum cash balance under loan covenant
Dr. Contractually Restricted Cash
Cr. Bank Account
📐 IFRS vs US GAAP Accounting Treatment
IFRS
IAS 7
Statement of Cash Flows
US GAAP
ASC 230
Statement of Cash Flows
❓ Frequently Asked Questions
Q: What is the difference between contractually restricted cash and legally restricted cash?
A: Contractually restricted cash arises from an agreement between parties (e.g., loan covenants), while legally restricted cash arises from a legal provision or court order.