Current vs non-current assets and liabilities
1 min read
Updated 03 Oct 2026
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AI summary
How to classify items by when they turn into cash or fall due.
3 sections
The 12-month test
- Current: expected to be realised, used or settled within 12 months (or the normal operating cycle).
- Non-current: beyond 12 months.
Examples
| Current assets | Non-current assets |
|---|---|
| Cash and bank, debtors, stock, prepaid expenses, GST input credit, short-term deposits | Land, building, machinery, vehicles, long-term investments, security deposits |
| Current liabilities | Non-current liabilities |
|---|---|
| Creditors, GST/TDS payable, outstanding expenses, advances from customers, loan instalments due within 12 months | Term loans (portion due after 12 months), long-term deposits received |
Why it matters
Working capital, the current ratio and bank loan limits are all worked out from current items. A term loan's next 12 months' instalments should be shown as current.
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