Current assets

Current assets, also called current assets, are assets that are liquid at the closing date of the fiscal year, or that can be converted into money within twelve months. In addition, those assets applied to settle a current liability, or that prevent disbursements during the year, are considered current. Inventories, trade debtors and other accounts receivable, short-term financial investments and treasury are components of current assets.

Concept of current assets

The General Accounting Plan of Spain includes within current assets the assets linked to the normal operating cycle that the company expects to sell, consume or carry out during it. In general, the normal operating cycle will not exceed one year. For these purposes, the normal operating cycle is understood as the period of time that elapses between the acquisition of the assets that are incorporated into the production process and the realization of the products in the form of cash or cash equivalents. When the normal exploitation cycle is not clearly identifiable, it will be assumed that it is one year.

• Those assets, different from those cited in the previous paragraph, whose maturity, disposal or realization is expected to occur in the short term, i.e., within a maximum period of one year, counted from the date of the end of the year. As a result, non-current financial assets will be reclassified in currents in the appropriate part.
• Financial assets classified as maintained to negotiate, except financial derivatives whose liquidation period is more than one year.
• Cash and other equivalent liquid assets, whose use is not restricted, to be exchanged or used to cancel a liability at least within the year following the end of the year.

The other elements of the asset will be classified as non-current.

Current asset accounts

1. Non-current assets maintained for sale.
2. Existence.
3. Commercial triggers and other accounts to be charged.
4. Investments in group companies and short-term partners.
5. Short-term financial investments.
6. Short-term reviews.
7. Cash and other equivalent liquid assets
8. Biological assets
9. Customers