Classification of Cash Related Items
Items
1. Cash (Coins, currency,
checks, demand
deposits,
manager/cashier’s
check, traveler’s check)
2. Petty cash and change
funds
3. Foreign currencies
(converted to Philippine
peso)
4. Deposits in foreign
country/bank
(converted to Philippine
peso)
5. Short term papers
(money market
instruments, time
deposits) with maturity
of three months or less
from the date of
acquisition
6. Short term papers with
maturity of more than 3
months but within 12
months
7. Postdated checks
8. Cash advances to
employees
9. Unused postage stamps
10. Bank overdraft
11. Compensating balance
If not legally restricted
If legally restricted as to
withdrawal
Classification Explanatory Notes
Cash  If unrestricted, report as cash in the current asset
section
 If restricted, identify and classify as current or
noncurrent assets
Cash  Report as cash (coins, currency checks for deposit
or encashment) in the current assets section.
 Report non-cash items as follows:
a. Advances/IOUs as Receivables
b. Unreplenished expenses as Expenses
c. Post-dated checks as Receivables
d. Unused postage stamp as Office Supplies or
Prepaid Expense
Cash  Report as current asset if not subject to any foreign
exchange restriction
Cash  Report as current asset if not subject to any foreign
exchange restriction
 Report as noncurrent asset if subject to foreign
exchange restriction with disclosure of the
restriction
Cash Equivalents  Report as current asset. May be combined with
cash
Temporary  Report as current assets
Investments or
Short-term
Financial Assets
Receivables –  Report as current or noncurrent assets depending
Trade or on maturity
Nontrade
Nontrade  Assumed to be collectible from employees or
receivables deductible from employees from their salaries.
Report as current or noncurrent asset depending on
maturity.
Prepaid expenses  Report as current assets
or Office supplies
on Hand
Current liability  Could be offset against other accounts in the same
bank
 If immaterial, can be offset with other bank
accounts
Cash
Other Current  Separately classified as a deposit maintained as
asset/Noncurrent compensating balance. Classified as current or
asset noncurrent asset following the classification of the
related borrowings whether current or noncurrent
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Manager’s Check. A manager's check is a secure check that a bank issues for an individual who has purchased it.
They are also called treasurer's checks, official checks and certified checks. All parties involved in a transaction
benefit from the use of a manager's check.

Cashier’s Check. A cashier's check (or cashier's cheque) is a check guaranteed by a bank, drawn on the bank's
own funds and signed by a cashier. Cashier's checks are treated as guaranteed funds because the bank, rather
than the purchaser, is responsible for paying the amount

Traveler’s check. A traveler's check is a medium of exchange utilized as an alternative to hard currency. The
product typically is used by people on vacation in foreign countries. They offer a safe way to travel overseas
without cash. The issuing party, usually a bank, provides security against lost or stolen checks

Money Orders A money order is a certificate, usually issued by governments and banking institutions, that
allows the stated payee to receive cash-on-demand.

Treasury Bills Peso-denominated short-term fixed income securities issued by the Republic of the Philippines
through its Bureau of Treasury.

Money market funds Investment vehicles that invest in relatively short-term (usually between one day and
one year) debt instruments such as treasury bills, certificates of deposit and commercial papers. As the main
purpose of the investment is usually preservation of principal with modest dividends, they are generally
regarded as being at low risk of significant changes in value

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