1.

What is current assets and non-current assets?

Answer»

1. Current Assets: An asset shall be classified as current asset if it satisfies any of the following criteria :

  • When it is expected to be realised in or is intended for sale or consumption in the company’s normal operating cycle.
  • If it is held primarily for the ‘ purpose of being traded
  • If it is expected to be realised within 12 months after the reporting date.

2. Non-current Assets: Assets other than current assets are classified as non-current asset.


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