Legally Restricted Cash
Code: 1125
👁 Views: 93
Account Information
| Financial Statement | Statement of Financial Position |
| Normal Balance | Debit |
Definition
Cash not available for use by law or government regulation (e.g., cash seizure by court order).
Common Journal Entries
Cash seizure by court order or law
Dr. Legally 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: How is legally restricted cash disclosed?
A: Disclosed in the financial statement notes, including nature of restriction, amount, and expected duration, which may impact the company's liquidity.