Deloitte comment letter on tentative agenda decision on demand deposits with restriction of use
We have commented on the IFRS Interpretations Committee's publication in the September 2021 Update of the tentative decision not to take onto the Committee’s agenda the request for clarification on whether an entity includes a demand deposit as a component of cash and cash equivalents in its statements of cash flows and financial position when the demand deposit is subject to contractual restrictions on use agreed with a third party.
We agree with the IFRS Interpretations Committee’s decision not to add this item onto its agenda for the reasons set out in the tentative agenda decision.