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Monies earmarked for a specific purpose and therefore not available for immediate and general use. Restricted cash, if the amount is material, is shown separately from cash and equivalents on the balance sheet.
Restricted cash and cash equivalent balances are those which meet the definition of cash and cash equivalents but are not available for use.
Disclose the existence of any significant restricted cash balances, together with narrative commentary. This is normally included as part of the notes to the financial statements.
Some obligations require to restrict cash for paying it back in its maturity date as example bonds .
Restricted cash means the cash which is limited for some special events and purposes. It can be used only at the specific time for the specific purpose. For example, A customer deposit for the goods manufacturing and shipment within the given time is a restricted cash until the goods are manufactured and shipped.
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