Boardwalk REIT reports the following selected information (in thousands) in its December 31, 2015, financial statements:
_____________________________________2015__________2014
Cash..............................................................$237,016..............$139,564
Segregated tenants' security deposits...............11,795..................12,138
Additional information:
1. Cash consists of bank balances and term deposits.
2. Segregated tenants' security deposits are held on behalf of tenants and are returned at the end of a lease if the apartment rented to the tenant is undamaged. They are considered restricted cash because they are held in trust bank accounts.
Instructions
(a) Why do you think that the security deposits are not reported as part of cash?
(b) In which section of the statement of financial position would the segregated tenants' security deposits most likely be reported? Explain.