What Is a Current Asset?

An entity shall classify an asset as current when:

• It expects to realise the asset or intends to sell or consume it in its normal operating cycle;
• It holds the asset primarily for the purpose of trading;
• It expects to realise the asset within twelve months after the reporting period
• The asset is cash or a cash equivalent unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

An entity shall classify all other assets as non-current.