{"id":3443,"date":"2012-10-12T17:29:19","date_gmt":"2012-10-12T15:29:19","guid":{"rendered":"http:\/\/www.officetodo.com\/public\/?p=3443"},"modified":"2012-10-06T17:32:10","modified_gmt":"2012-10-06T15:32:10","slug":"current-and-non-current","status":"publish","type":"post","link":"https:\/\/www.officetodo.com\/public\/current-and-non-current\/","title":{"rendered":"Current and non-current"},"content":{"rendered":"<p>Generally everything that\u2019s to be <strong>settled within the next 12 months following from the balance sheet date<\/strong> are classified as <strong>current<\/strong> and rest as non-current. That\u2019s the general rule, however when it comes to assets and liabilities specifically there are a few special considerations.\u00a0<!--more--><\/p>\n<p>When we talk about assets and their separation into current and non-current balances, it\u2019s all about liquidity. Resources you can turn into cash easier than others are more liquid and hence classified as current assets. For an example receivables are something you surely expect to be collected within the next 12 months so they are almost always current assets. Unless the payment date is extended beyond 12 months in which case the balance would be non-current and reclassified when the payment date is getting closer and is then within the 12 month term.<\/p>\n<p>Normally everything else is treated as current assets except property, plant and equipment and other tangible and intangible assets that are being used for longer than 12 months. See, again the 12 months. What\u2019s more, if applicable and as mentioned above, the payment date of some receivable balance is after 12 months, those are also treated as non-current assets.<\/p>\n<p>Liabilities are grouped purely based on payment date. When the payment date falls within next 12 months from the balance sheet date the balance is current and when it\u2019s after 12 months, it\u2019s obviously non-current. Something to take a note with grouping liabilities is that if a current balance gets refinanced as non-current or you agree on a new date after the balance sheet date, it\u2019s still current in the Annual Report. Also, if the creditor, i.e. bank, has set certain ratios your financial statements have to meet and you do not meet them, the payable gets usually due immediately at request. In such a case the balance is current just as well.<\/p>\n<p>So as a summary, there\u2019s a 12-month condition to both assets and liabilities.<\/p>\n<p>If you want to learn more about Annual Report,\u00a0<a title=\"Office ToDo UNI\" href=\"http:\/\/www.officetodo.com\/public\/uni\/\">please check out our Office ToDo UNI.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Generally everything that\u2019s to be settled within the next 12 months following from the balance sheet date are classified as current and rest as non-current. That\u2019s the general rule, however when it comes to assets and liabilities specifically there are a few special considerations.\u00a0<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[28,46],"tags":[],"class_list":["post-3443","post","type-post","status-publish","format-standard","hentry","category-4-reporting","category-4-1-annual-report"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/3443","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/comments?post=3443"}],"version-history":[{"count":2,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/3443\/revisions"}],"predecessor-version":[{"id":3446,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/3443\/revisions\/3446"}],"wp:attachment":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/media?parent=3443"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/categories?post=3443"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/tags?post=3443"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}