This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

Deloitte Alert on money market funds

  • alert.jpg Image

26 Oct 2008

As a result of recent market events, a number of 'money market funds' (mutual funds that invest primarily or exclusively in short-term debt securities designed to maintain a constant monetary value) have incurred losses on their investments.

Some of these funds have experienced declines in fair value as a result of deterioration in the creditworthiness of their assets, general illiquidity conditions, or both, and redemptions by investors have increased. Accordingly, some funds have been forced to liquidate their assets, impose limits on redemptions, or obtain support from related entities. This Financial Reporting Alert 08-17 (PDF 47k) from Deloitte (United States) addresses the investor's accounting for money market funds that were appropriately classified as cash equivalents and that have subsequently imposed restrictions on redemptions or have been frozen. Accounting considerations discussed include balance sheet classification, measurement, and classification in the statement of cash flows.

 

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.