Restricted Statutory Deposits
Code: 1124
👁 Views: 137
Account Information
| Financial Statement | Statement of Financial Position |
| Normal Balance | Debit |
Definition
Cash deposits that the entity is required to maintain with a central bank, regulatory authority, or financial institution in accordance with applicable legal or regulatory requirements.
Common Journal Entries
Deposit statutory reserve with central bank or other bank (e.g., legal reserve)
Dr. Statutory Bank Deposits
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: Is a statutory bank deposit considered cash and cash equivalent?
A: No, because it is a mandatory deposit not available for immediate use, thus classified as restricted cash under current or non-current assets depending on the period.