arena so welcome to sir wins accounting lectures an accounting discussion online the classroom approach in the review for the first view another consequence foreign our are short-term highly liquid investments that are readily convertible into ash and so near their maturity that they present insignificant in significant risk of changes in value because of changes in interest rates by definition your basic definition of money i suggest a medium of exchange okay so meaning okay so by the way dash equivalent is not really a purpose is for a medium of exchange but rather it is for investment because of this your investment your investment must be the investment also must be highly liquid if it's in significant risk of changes of risk of changes in value because of changes in interest rates fairly investment [Music] foreign all right [Music] [Applause] three months bsp thresh reveals three months time deposit three months money market instrument or commercial paper blank erb aspiration reveals commercial paper difficult referential purchase three months before maturing today so an uncommon example when we talk about the term the answer is the three months all right if it's it unfortunately three months foreign is liquid investment it was about companies all right because even if even if the investment is two months highly liquidated foreign is foreign [Music] yes [Music] [Music] in more risky that's what is not the risk is insignificant that's why even though by nature by by form by form shuttle like investment viva in substance okay in some sense that is cash it can be considered as cash negligible your time period period investment they are can be considered as cash because it is so nearly significant more than three months is this commercial paper automatically actually same concept non-commercial paper at ratio reveals [Music] [Music] after three months yes at the end of the day for our investments all right three months away foreign [Laughter] commercial i [Music] threshold reveals commercial paper redeemable preferences three months before maturity foreign okay the answer is a classification three months before kailan mubarak five years before the three months classification because it all through out [Music] characteristics if the investment is three months all right assuming highly liquid the classification is cash equivalent if the investment is more than three months already okay until five at least button but only not more than 12 months if it's available i don't think of course i'm going to get automatically is a current asset considered as short-term investment attenuation long-term investment simply giving more than three months by three months or less i