Current asset
A current asset is expected to be realised, sold or consumed in the normal operating cycle; is held primarily for trading; is expected to be realised within twelve months; or is cash or a cash equivalent unless restricted from exchange or use to settle a liability for at least twelve months after the reporting date. Other assets are normally non-current. The operating-cycle criterion matters for inventory and trade receivables.
Worked example
Inventory expected to be sold during an 18-month normal operating cycle can be current even though sale is more than twelve months away.
Common mistake
Current does not simply mean physical, small or readily available; apply the classification criteria rather than a single shortcut.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | F1 | Direct | July 2027–August 2028 |
| ACCA | FA | Direct | September 2026–June 2027 |
| ACCA | K1 | Direct | July 2027–August 2028 |
| FIA | FFA | Direct | September 2026–June 2027 |