Current assets can be defined as the set of assets which can be expected to be converted into cash readily in one year during the normal business cycle. These assets are also referred to as Liquid assets. Non-current assets which are also referred to as “Fixed assets” are the set of assets which can’t be easily converted into cash or not expected to become cash in a time span of one year. Current assets are also referred to as Liquid assets. Non-current assets are not directly sold to the organization’s end customers. The primary difference in current and non-current assets is in the time they take to get converted into cash. Current assets are more readily convertible into cash as compared to non-current assets which are fixed in nature. Both current as well as non-current assets are important to an organization. The current assets differ from business to business. Some scholars argue that inventory is not readily convertible in and shall not be included in the list of current assets. Fixed assets are generally classified in three line items: Long-term investments, property, plant and equipment and Goodwill and other intangible assets. Amongst non-current assets, goodwill is the least liquid because it is not easily quantifiable.
There are two main types of assets; fixed and current assets. There are other assets but these are the only two which are required in balance sheets to determine the growth of a company (Ingram & Albright, 2006.pp.292). Current assets are cash and other assets which are convertible to cash through selling or consuming but with no effect to the normal operations of the business.
Thus the current and the non-current assets and liabilities of the company has been assessed so as to investigate on the valuation method thus adopted by the company. At time the valuation of the assets of the company gets inflated due to the method of valuation thus adopted by the company.
This body also has the responsibility of coming up with auditing standards. It has the duty of ensuring that firms and organizations follow the set standards and that they work within the set framework (Alexander, 234). The standards also ensure that there is a common place for reference regarding all accounting challenges and problems on how to handle accounting for non-current assets.
It is depreciated so that the amount depreciable can be distributed on a systematic basis over the life cycle. IAS 38 was first released on September, 1998. The standard was revised and re-released in March, 2004. Subsequent amendments were made on the accounting standard on May, 2009.
On the other hand, the non-current assets of WMT include fixed assets like property, plant and equipment acquired by the company for intended operations. In this section, the corresponding accumulated depreciation or depletion is deducted from the property, plant and equipment to account for the wear-and-tear of these fixed assets.
ssets include: cash as well as cash equivalents, those securities anticipated to be transformed into liquid form by being disposed within a period of one year or by way of maturing, those accounts that are receivable, and inventory.
Among the above mentioned examples some of
The current status of SEC acceptance of IFRS statements for the US based companies is described below.
SEC seems shifting from US GAAP to IFRS statements for the US based companies because of the differences between these two
Johnson and Johnson Company divides its assets into two main categories; current and non-current assets. The current assets are listed first in the balance sheet in order of liquidity followed by the non-current assets. From the balance sheet, it can be
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Current assets can be defined as the set of assets which can be expected to be converted into cash readily in one year during the normal business cycle. Non-current assets which are also referred to as “Fixed assets” are the set of assets which can’t be easily converted into cash…