# ASC 210-10-45: Balance Sheet — Overall — 45 Other Presentation Matters Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/210/10/#45-other-presentation-matters) 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. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-09T22:58:31.300Z to 2026-09-09T22:58:31.300Z Record version: sha256:514a3a365ee047135090a65aa686962e6497f7a98aad91496790ba3cdf07dc2d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-10-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/210/10/#45-other-presentation-matters) SEC content: no #### Classification of Current Assets ##### [210-10-45-1](https://asc.understandingaccounting.org/asc/210/10/#210-10-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:31.300Z to 2026-09-09T22:58:31.300Z Record version: sha256:db0d8eb401bfb0376e6048e18ff4a7931ef56dac058fea245000dc6f6faf8df3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Current assets](https://asc.understandingaccounting.org/glossary/c/#current-assets "Current assets is used to designate cash and other assets or resources commonly identified as those that are reasonably expected to be realized in cash or sold or consumed during the normal operating cycle of the business. See paragraphs 210-10-45-1210-10-45-2210-10-45-3210-10-45-4.") generally include all of the following: 1. a Cash available for current operations and items that are [cash equivalents](https://asc.understandingaccounting.org/glossary/c/#cash-equivalents "Cash equivalents are short-term, highly liquid investments that have both of the following characteristics: Readily convertible to known amounts of cash So near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month U.S. Treasury bill and a three-year U.S. Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased three years ago does not become a cash equivalent when its remaining maturity is three months. Examples of items commonly considered to be cash equivalents are Treasury bills, commercial paper, money market funds, and federal funds sold (for an entity with banking operations).") 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. ##### [210-10-45-2](https://asc.understandingaccounting.org/asc/210/10/#210-10-45-2) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:31.300Z to 2026-09-09T22:58:31.300Z Record version: sha256:6f896bdd26e7e3c1751970886db6b66e76ee52afa6c6f1acefe931b2673abb91 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/glossary/o/#operating-cycle "The average time intervening between the acquisition of materials or services and the final cash realization constitutes an 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. ##### [210-10-45-3](https://asc.understandingaccounting.org/asc/210/10/#210-10-45-3) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:31.300Z to 2026-09-09T22:58:31.300Z Record version: sha256:46256fc66f7f37ecfe5a416bdb1f111f5c0fc334eb28bd1334909ef18a39df02 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [210-10-45-4](https://asc.understandingaccounting.org/asc/210/10/#210-10-45-4) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:31.300Z to 2026-09-09T22:58:31.300Z Record version: sha256:8e263859844941f6a96d011ce3671e48f919e34345896e8cbec564f97f93f848 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. #### Classification of Current Liabilities ##### [210-10-45-5](https://asc.understandingaccounting.org/asc/210/10/#210-10-45-5) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:31.300Z to 2026-09-09T22:58:31.300Z Record version: sha256:fb665ca145ddd335247e2722bf23ce0eb90a016d593460e5059a4123cada7736 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A total of [current liabilities](https://asc.understandingaccounting.org/glossary/c/#current-liabilities "Current liabilities is used principally to designate obligations whose liquidation is reasonably expected to require the use of existing resources properly classifiable as current assets, or the creation of other current liabilities. See paragraphs 210-10-45-5210-10-45-6210-10-45-7210-10-45-8210-10-45-9210-10-45-10210-10-45-11210-10-45-12.") shall be presented in classified balance sheets. ##### [210-10-45-6](https://asc.understandingaccounting.org/asc/210/10/#210-10-45-6) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:31.300Z to 2026-09-09T22:58:31.300Z Record version: sha256:906f6de9c77cb45821038bff965064a6cd87e28176dad57a4e5679b179dbd767 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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). ##### [210-10-45-7](https://asc.understandingaccounting.org/asc/210/10/#210-10-45-7) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:31.300Z to 2026-09-09T22:58:31.300Z Record version: sha256:c87f0719b958fa789ebc39335fe5213ddb96d950c4db0c4cf4bf6e3be0d822e6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/glossary/s/#short-term-obligations "Short-term obligations are those that are scheduled to mature within one year after the date of an entity's balance sheet or, for those entities that use the operating cycle concept of working capital described in paragraphs 210-10-45-3 and 210-10-45-7, within an entity's operating cycle that is longer than one year.") expected to be refinanced. ##### [210-10-45-8](https://asc.understandingaccounting.org/asc/210/10/#210-10-45-8) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:31.300Z to 2026-09-09T22:58:31.300Z Record version: sha256:50aa904af5cee2d160e78a55cf0aba48dfd1647139940d8b858c49c747fe702e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [210-10-45-9](https://asc.understandingaccounting.org/asc/210/10/#210-10-45-9) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:31.300Z to 2026-09-09T22:58:31.300Z Record version: sha256:50d3d9c65a13ec6af57f8abd5b574092ff9c20e920d9b077ce30f5be6ffbaf7f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [210-10-45-10](https://asc.understandingaccounting.org/asc/210/10/#210-10-45-10) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:31.300Z to 2026-09-09T22:58:31.300Z Record version: sha256:40113618e02a3b87264a2bf4cde1ba103c2439d4ab8cc493244e3df29a8ff709 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [210-10-45-11](https://asc.understandingaccounting.org/asc/210/10/#210-10-45-11) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:31.300Z to 2026-09-09T22:58:31.300Z Record version: sha256:8e6eccb12aeb34a75d99ae243851fbf9712074a9cde247f370676181c631509f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [210-10-45-12](https://asc.understandingaccounting.org/asc/210/10/#210-10-45-12) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:31.300Z to 2026-09-09T22:58:31.300Z Record version: sha256:9a4542fe4421c3bd2382533d1e69137432e656da3ff7932586684721b737949b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/glossary/w/#working-capital "Working capital (also called net working capital) is represented by the excess of current assets over current liabilities and identifies the relatively liquid portion of total entity capital that constitutes a margin or buffer for meeting obligations within the ordinary operating cycle of the entity.") for long periods. #### Valuation Allowances ##### [210-10-45-13](https://asc.understandingaccounting.org/asc/210/10/#210-10-45-13) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:31.300Z to 2026-09-09T22:58:31.300Z Record version: sha256:be79188668749e916f62f4a60c49d1e256ad01c51b7c553dbd21f0274f2b1251 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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.