{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/210/10/#45-other-presentation-matters","source":"FASB Accounting Standards Codification, Basic View","usage":"Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.","topic":"210","topic_title":"Balance Sheet","subtopic":"210-10","subtopic_title":"Overall","section":{"number":"45","label":"45 Other Presentation Matters","anchor":"45-other-presentation-matters","is_sec":false,"groups":[{"block":null,"heading":"Classification of Current Assets","paragraphs":[{"citation":"210-10-45-1","para":"45-1","html":"
Current assets generally include all of the following:
  1. a
    Cash available for current operations and items that are cash equivalents
  2. b
    Inventories of merchandise, raw materials, goods in process, finished goods, operating supplies, and ordinary maintenance material and parts
  3. c
    Trade accounts, notes, and acceptances receivable
  4. d
    Receivables from officers, employees, affiliates, and others, if collectible in the ordinary course of business within a year
  5. e
    Installment or deferred accounts and notes receivable if they conform generally to normal trade practices and terms within the business
  6. f
    Marketable securities representing the investment of cash available for current operations
  7. g
    Prepaid expenses such as the following:
    1. 1
      Insurance
    2. 2
      Interest
    3. 3
      Rents
    4. 4
      Taxes
    5. 5
      Unused royalties
    6. 6
      Current paid advertising service not yet received
    7. 7
      Operating supplies.
","snippet":"Current assets generally include all of the following:\n(a) Cash available for current operations and items that are cash equivalents\n(b) Inventories of merchandise, raw materials, goods in process, finished goods, operat…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:db0d8eb401bfb0376e6048e18ff4a7931ef56dac058fea245000dc6f6faf8df3","downloaded_from":"2026-09-09T22:58:31.300Z","last_downloaded_at":"2026-09-09T22:58:31.300Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483467","source_sha256":"ce6dd66270d451ba6d86befdfc64fc43893558b22357510d24b17faa92ae10ad"}},{"citation":"210-10-45-2","para":"45-2","html":"
Prepaid expenses are not current assets in the sense that they will be converted into cash but in the sense that, if not paid in advance, they would require the use of current assets during the operating cycle. An asset representing the overfunded status of a single-employer defined benefit pension or postretirement plan shall be classified pursuant to Section 715-20-45.
","snippet":"Prepaid expenses are not current assets in the sense that they will be converted into cash but in the sense that, if not paid in advance, they would require the use of current assets during the operating cycle. An asset …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6f896bdd26e7e3c1751970886db6b66e76ee52afa6c6f1acefe931b2673abb91","downloaded_from":"2026-09-09T22:58:31.300Z","last_downloaded_at":"2026-09-09T22:58:31.300Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483467","source_sha256":"ce6dd66270d451ba6d86befdfc64fc43893558b22357510d24b17faa92ae10ad"}},{"citation":"210-10-45-3","para":"45-3","html":"
A one-year time period shall be used as a basis for the segregation of current assets in cases where there are several operating cycles occurring within a year. However, if the period of the operating cycle is more than 12 months, as in, for instance, the tobacco, distillery, and lumber businesses, the longer period shall be used. If a particular entity has no clearly defined operating cycle, the one-year rule shall govern.
","snippet":"A one-year time period shall be used as a basis for the segregation of current assets in cases where there are several operating cycles occurring within a year. However, if the period of the operating cycle is more than …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:46256fc66f7f37ecfe5a416bdb1f111f5c0fc334eb28bd1334909ef18a39df02","downloaded_from":"2026-09-09T22:58:31.300Z","last_downloaded_at":"2026-09-09T22:58:31.300Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483467","source_sha256":"ce6dd66270d451ba6d86befdfc64fc43893558b22357510d24b17faa92ae10ad"}},{"citation":"210-10-45-4","para":"45-4","html":"
The concept of the nature of current assets contemplates the exclusion from that classification of such resources as the following:
  1. a
    Cash and claims to cash that are restricted as to withdrawal or use for other than current operations, are designated for expenditure in the acquisition or construction of noncurrent assets, or are segregated for the liquidation of long-term debts. Even though not actually set aside in special accounts, funds that are clearly to be used in the near future for the liquidation of long-term debts, payments to sinking funds, or for similar purposes shall also, under this concept, be excluded from current assets. However, if such funds are considered to offset maturing debt that has properly been set up as a current liability, they may be included within the current asset classification.
  2. b
    Investments in securities (whether marketable or not) or advances that have been made for the purposes of control, affiliation, or other continuing business advantage.
  3. c
    Receivables arising from unusual transactions (such as the sale of capital assets, or loans or advances to affiliates, officers, or employees) that are not expected to be collected within 12 months.
  4. d
    Cash surrender value of life insurance policies.
  5. e
    Land and other natural resources.
  6. f
    Depreciable assets.
  7. g
    Long-term prepayments that are fairly chargeable to the operations of several years, or deferred charges such as bonus payments under a long-term lease, costs of rearrangement of factory layout or removal to a new location.
","snippet":"The concept of the nature of current assets contemplates the exclusion from that classification of such resources as the following:\n(a) Cash and claims to cash that are restricted as to withdrawal or use for other than c…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8e263859844941f6a96d011ce3671e48f919e34345896e8cbec564f97f93f848","downloaded_from":"2026-09-09T22:58:31.300Z","last_downloaded_at":"2026-09-09T22:58:31.300Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483467","source_sha256":"ce6dd66270d451ba6d86befdfc64fc43893558b22357510d24b17faa92ae10ad"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:48b7b48d56b8f8e0513d7dfbd0efc944daca4aa1728806346b2733a59c598665","downloaded_from":"2026-09-09T22:58:31.300Z","last_downloaded_at":"2026-09-09T22:58:31.300Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483467","source_sha256":"ce6dd66270d451ba6d86befdfc64fc43893558b22357510d24b17faa92ae10ad"}},{"block":null,"heading":"Classification of Current Liabilities","paragraphs":[{"citation":"210-10-45-5","para":"45-5","html":"
A total of current liabilities shall be presented in classified balance sheets.
","snippet":"A total of current liabilities shall be presented in classified balance sheets.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fb665ca145ddd335247e2722bf23ce0eb90a016d593460e5059a4123cada7736","downloaded_from":"2026-09-09T22:58:31.300Z","last_downloaded_at":"2026-09-09T22:58:31.300Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483467","source_sha256":"ce6dd66270d451ba6d86befdfc64fc43893558b22357510d24b17faa92ae10ad"}},{"citation":"210-10-45-6","para":"45-6","html":"
The concept of current liabilities includes estimated or accrued amounts that are expected to be required to cover expenditures within the year for known obligations the amount of which can be determined only approximately (as in the case of provisions for accruing bonus payments) or where the specific person or persons to whom payment will be made cannot as yet be designated (as in the case of estimated costs to be incurred in connection with guaranteed servicing or repair of products already sold).
","snippet":"The concept of current liabilities includes estimated or accrued amounts that are expected to be required to cover expenditures within the year for known obligations the amount of which can be determined only approximate…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:906f6de9c77cb45821038bff965064a6cd87e28176dad57a4e5679b179dbd767","downloaded_from":"2026-09-09T22:58:31.300Z","last_downloaded_at":"2026-09-09T22:58:31.300Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483467","source_sha256":"ce6dd66270d451ba6d86befdfc64fc43893558b22357510d24b17faa92ae10ad"}},{"citation":"210-10-45-7","para":"45-7","html":"
Section 470-10-45 includes guidance on various debt transactions that may result in current liability classification. These transactions are the following:
  1. a
    Due on demand loan agreements
  2. b
    Callable debt agreements
  3. c
    Short-term obligations expected to be refinanced.
","snippet":"Section 470-10-45 includes guidance on various debt transactions that may result in current liability classification. These transactions are the following:\n(a) Due on demand loan agreements\n(b) Callable debt agreements\n(…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c87f0719b958fa789ebc39335fe5213ddb96d950c4db0c4cf4bf6e3be0d822e6","downloaded_from":"2026-09-09T22:58:31.300Z","last_downloaded_at":"2026-09-09T22:58:31.300Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483467","source_sha256":"ce6dd66270d451ba6d86befdfc64fc43893558b22357510d24b17faa92ae10ad"}},{"citation":"210-10-45-8","para":"45-8","html":"
As a balance sheet category, the classification of current liabilities generally includes obligations for items that have entered into the operating cycle, such as the following:
  1. a
    Payables incurred in the acquisition of materials and supplies to be used in the production of goods or in providing services to be offered for sale.
  2. b
    Collections received in advance of the delivery of goods or performance of services. Examples of such current liabilities are obligations resulting from advance collections on ticket sales, which will normally be liquidated in the ordinary course of business by the delivery of services. On the contrary, obligations representing long-term deferments of the delivery of goods or services would not be shown as current liabilities. Examples of the latter are the issuance of a long-term warranty or the advance receipt by a lessor of rental for the final period of a 10 year lease as a condition to execution of the lease agreement.
  3. c
    Debts that arise from operations directly related to the operating cycle, such as accruals for wages, salaries, commissions, rentals, royalties, and income and other taxes.
","snippet":"As a balance sheet category, the classification of current liabilities generally includes obligations for items that have entered into the operating cycle, such as the following:\n(a) Payables incurred in the acquisition …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:50aa904af5cee2d160e78a55cf0aba48dfd1647139940d8b858c49c747fe702e","downloaded_from":"2026-09-09T22:58:31.300Z","last_downloaded_at":"2026-09-09T22:58:31.300Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483467","source_sha256":"ce6dd66270d451ba6d86befdfc64fc43893558b22357510d24b17faa92ae10ad"}},{"citation":"210-10-45-9","para":"45-9","html":"
Other liabilities whose regular and ordinary liquidation is expected to occur within a relatively short period of time, usually 12 months, are also generally included, such as the following:
  1. a
    Short-term debts arising from the acquisition of capital assets
  2. b
    Serial maturities of long-term obligations
  3. c
    Amounts required to be expended within one year under sinking fund provisions
  4. d
    Agency obligations arising from the collection or acceptance of cash or other assets for the account of third persons. Loans accompanied by pledge of life insurance policies would be classified as current liabilities if, by their terms or by intent, they are to be repaid within 12 months. The pledging of life insurance policies does not affect the classification of the asset any more than does the pledging of receivables, inventories, real estate, or other assets as collateral for a short-term loan. However, when a loan on a life insurance policy is obtained from the insurance entity with the intent that it will not be paid but will be liquidated by deduction from the proceeds of the policy upon maturity or cancellation, the obligation shall be excluded from current liabilities.
","snippet":"Other liabilities whose regular and ordinary liquidation is expected to occur within a relatively short period of time, usually 12 months, are also generally included, such as the following:\n(a) Short-term debts arising …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:50d3d9c65a13ec6af57f8abd5b574092ff9c20e920d9b077ce30f5be6ffbaf7f","downloaded_from":"2026-09-09T22:58:31.300Z","last_downloaded_at":"2026-09-09T22:58:31.300Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483467","source_sha256":"ce6dd66270d451ba6d86befdfc64fc43893558b22357510d24b17faa92ae10ad"}},{"citation":"210-10-45-10","para":"45-10","html":"
A liability representing the underfunded status of a single-employer defined benefit pension or postretirement plan shall be classified pursuant to Section 715-20-45.
","snippet":"A liability representing the underfunded status of a single-employer defined benefit pension or postretirement plan shall be classified pursuant to Section 715-20-45.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:40113618e02a3b87264a2bf4cde1ba103c2439d4ab8cc493244e3df29a8ff709","downloaded_from":"2026-09-09T22:58:31.300Z","last_downloaded_at":"2026-09-09T22:58:31.300Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483467","source_sha256":"ce6dd66270d451ba6d86befdfc64fc43893558b22357510d24b17faa92ae10ad"}},{"citation":"210-10-45-11","para":"45-11","html":"
If the amounts of the periodic payments of an obligation are, by contract, measured by current transactions, as for example by rents or revenues received in the case of equipment trust certificates or by the depletion of natural resources in the case of property obligations, the portion of the total obligation to be included as a current liability shall be that representing the amount accrued at the balance sheet date.
","snippet":"If the amounts of the periodic payments of an obligation are, by contract, measured by current transactions, as for example by rents or revenues received in the case of equipment trust certificates or by the depletion of…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8e6eccb12aeb34a75d99ae243851fbf9712074a9cde247f370676181c631509f","downloaded_from":"2026-09-09T22:58:31.300Z","last_downloaded_at":"2026-09-09T22:58:31.300Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483467","source_sha256":"ce6dd66270d451ba6d86befdfc64fc43893558b22357510d24b17faa92ae10ad"}},{"citation":"210-10-45-12","para":"45-12","html":"
The current liability classification is not intended to include debts to be liquidated by funds that have been accumulated in accounts of a type not properly classified as current assets, or long-term obligations incurred to provide increased amounts of working capital for long periods.
","snippet":"The current liability classification is not intended to include debts to be liquidated by funds that have been accumulated in accounts of a type not properly classified as current assets, or long-term obligations incurre…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9a4542fe4421c3bd2382533d1e69137432e656da3ff7932586684721b737949b","downloaded_from":"2026-09-09T22:58:31.300Z","last_downloaded_at":"2026-09-09T22:58:31.300Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483467","source_sha256":"ce6dd66270d451ba6d86befdfc64fc43893558b22357510d24b17faa92ae10ad"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a17f5b79ac0fdfc345e8ac33bf2ee4795973bb7d847c847fb9999e629b2628c0","downloaded_from":"2026-09-09T22:58:31.300Z","last_downloaded_at":"2026-09-09T22:58:31.300Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483467","source_sha256":"ce6dd66270d451ba6d86befdfc64fc43893558b22357510d24b17faa92ae10ad"}},{"block":null,"heading":"Valuation Allowances","paragraphs":[{"citation":"210-10-45-13","para":"45-13","html":"
Asset valuation allowances for losses such as those on receivables and investments shall be deducted from the assets or groups of assets to which the allowances relate.
","snippet":"Asset valuation allowances for losses such as those on receivables and investments shall be deducted from the assets or groups of assets to which the allowances relate.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:be79188668749e916f62f4a60c49d1e256ad01c51b7c553dbd21f0274f2b1251","downloaded_from":"2026-09-09T22:58:31.300Z","last_downloaded_at":"2026-09-09T22:58:31.300Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483467","source_sha256":"ce6dd66270d451ba6d86befdfc64fc43893558b22357510d24b17faa92ae10ad"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7303215f0331043e2eaefe97f4e6bc25e042f41f921520c48d1202f78933f8f3","downloaded_from":"2026-09-09T22:58:31.300Z","last_downloaded_at":"2026-09-09T22:58:31.300Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483467","source_sha256":"ce6dd66270d451ba6d86befdfc64fc43893558b22357510d24b17faa92ae10ad"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:514a3a365ee047135090a65aa686962e6497f7a98aad91496790ba3cdf07dc2d","downloaded_from":"2026-09-09T22:58:31.300Z","last_downloaded_at":"2026-09-09T22:58:31.300Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483467","source_sha256":"ce6dd66270d451ba6d86befdfc64fc43893558b22357510d24b17faa92ae10ad"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:514a3a365ee047135090a65aa686962e6497f7a98aad91496790ba3cdf07dc2d","downloaded_from":"2026-09-09T22:58:31.300Z","last_downloaded_at":"2026-09-09T22:58:31.300Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483467","source_sha256":"ce6dd66270d451ba6d86befdfc64fc43893558b22357510d24b17faa92ae10ad"}}