An entity classifies assets as current assets, if the entity expects to realize the assets, or intends to sell or use them, in the normal operating cycle, the entity holds assets for trading purposes, the entity expects to realize the assets within 12 months after the reporting period or cash or equivalent cash unless the asset is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period. The entity classifies assets that do not fall into this category as non-current assets.
This Statement uses the term “non-current” to cover fixed assets, intangible assets and long-term financial assets. This statement does not prohibit the use of other terms as long as the meaning is clear. When the entity’s normal operating cycle is not clearly identifiable, it is assumed to be 12 months. Current assets include assets (such as inventories and trade receivables) that are sold, consumed or realized as part of the normal operating cycle even though they are not expected to be realized within 12 months after the reporting period. Current assets also include assets held for trading.
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