You have been hired as Sunshine's accountant. They have multiple sources of cash and cash equivalents. The board votes to set aside ( $ 100,000,000 ) for a future expansion of the manufacturing headquarters that will be built in five years. The client has asked you to show this amount on a separate line item (other than cash and cash equivalents) on their balance sheet. Your advice to them should be as follows: Yes, they can show both individual balances on the balance sheet as US GAAP recognizes both general cash and cash equivalents and restricted cash. Both balances should also be discussed in separate footnotes. The balances must be combined and shown as cash and cash equivalents on a single line item per US GAAP. Furthermore, a footnote will be drafted to explain the board's decision.

You have been hired as Sunshine's accountant. They have multiple sources of cash and cash equivalents. The board votes to set aside $100,000,000 for a future expansion of the manufacturing headquarters that will be built in five years. The client has asked you to show this amount on a separate line item (other than cash and cash equivalents) on their balance sheet. Your advice to them should be as follows: Yes, they can show both individual billances on the balance sheet as US GAAP recognizes both general cash and cash equivalents and restricted cash. Both balances should also be discussed in separate footnotes. The balances must be combined and shown as cash and cash equivalents on a single line item per US GAAP Furthermore, a footnote will be drafted to explain the board's decision