In the context of a long-range project to rewrite the rules for business-performance reporting, the Financial Accounting Standards Board has decided the new system it eventually develops will no longer allow a line item for “cash equivalents.”
The category has become closely scrutinized in recent years as audit firms questioned whether companies were inappropriately including certain short-term investments with cash equivalents, says John Rieger, director of financial accounting and reporting at the Association for Financial Professionals.
