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This excerpt taken from the EBAY 10-Q filed Jul 28, 2006. Other
Current Assets
Customer accounts include liquid assets set aside for certain
customer liabilities as required in conjunction with
PayPals Electronic Money Institution license from the
United Kingdoms Financial Services Authority. The customer
accounts represent claims on PayPals U.K. subsidiary and
may be invested only in specified types of liquid assets. These
assets are included on our balance sheet as current assets with
an offsetting current liability in funds payable and amounts due
to customers. All customer funds held by PayPal as an agent or
custodian are for the benefit of its customers and, accordingly,
are not reflected in our condensed consolidated balance sheet.
These balances include funds held in the U.S. that are
deposited in accounts insured by the Federal Deposit Insurance
Corporation.
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