CAT / FIA FFA Syllabus D. Recording Transactions And Events - Current and non-current assets - Notes 2 / 9
The difference between current and non-current assets
Current assets are assets
realized (sold/consumed) in entities’ normal operating cycle
which are held for trading
which include cash and cash equivalent
are expected to realize within 12 months after the end of the reporting period
| current assets | non-current assets |
| 1. realized within normal operating cycle of entity | 1. not realized in normal operating cycle |
| 2. intended for sale or consumption | 2. intended for use over a long period of time |
| 3. used for trading purposes | 3. used for investment and productive purposes |
| 4. realized within 12 months | 4. held for more than 12 months |
| 5. e.g. inventory, cash and bank balance, raw material, receivables | 5. e.g. plant and machinery, equipment, land and buildings, office furniture. |