bcp901

DarienHacker Wrote:
-------------------------------------------------------
> > I'm not sure if the accounting rules actually
> stipulate that in the definition of cash
> equivalents and what the cutoff for volatility
> would be
>
> My GAAP book indicates that LT Investments are
> those intended to be held for > 1 year. No
> mention of or requirement for (il)liquidity.

+1

That's correct. I've analyzed companies that have accounted for the majority of their investments as LT, but most were very liquid (over 80% could be liquidated within a week).



Edited 1 time(s). Last edit at Thursday, July 28, 2011 at 11:38AM by JensensalphaMale.