Current Assets
Code: 1100
👁 Views: 139
Account Information
| Financial Statement | Statement of Financial Position |
| Normal Balance | Debit |
Definition
Assets expected to be converted to cash within one year
Sub-accounts
1120
Restricted Cash
1140
Accounts Receivable
1150
Inventory
1160
Prepaid Expenses
1170
Other Receivables
1185
Notes Receivable
1186
Deferred Tax Asset
Related Accounts
📐 IFRS vs US GAAP Accounting Treatment
IFRS
IAS 1
Presentation of Financial Statements
US GAAP
ASC 210
Balance Sheet
❓ Frequently Asked Questions
Q: What are the criteria for classifying an asset as current?
A: An asset is classified as current if: (1) expected to be realized, sold, or consumed within the normal operating cycle, (2) held for trading purposes, (3) expected to be realized within 12 months of the balance sheet date, (4) cash or cash equivalent not restricted.
Q: Can an asset be current even if its life is more than one year?
A: Yes, if it is part of the normal operating cycle (e.g., inventory of a construction company may take more than a year to sell).
Q: How are current assets presented on the balance sheet?
A: Usually in order of liquidity (most liquid first): cash, short-term investments, receivables, inventory, prepaid expenses.