Cash and cash equivalents include cash at bank and in hand as well as highly liquid current financial assets with the original maturity of up to three months, which are readily convertible into specific cash amounts and subject to an insignificant risk of fluctuation in value. This item also includes amounts deposited in VAT split payment accounts.
Cash and cash equivalents are tested for impairment using individual analysis based on an assessment of the creditworthiness of the financial institutions they are deposited with, in accordance with the expected loss model.
In the statement of financial position, cash and cash equivalents are presented net of outstanding current account debt.