current liabilities

ASC 210-10 provides the general guidance for classifying assets and liabilities as current or noncurrent on a classified balance sheet (statement of financial position), permitting ready determination of working capital. Current assets are cash and other resources expected to be realized in cash or consumed within one year or the operating cycle, whichever is longer; current liabilities are obligations whose liquidation is expected to require use of current assets within that same period. The guidance applies to all entities, but only when an entity chooses to present a classified balance sheet (210-10-15-3).

ASC 720-30 governs when an accrual-basis taxpayer records a liability for real and personal property taxes and how much is charged to income in each period. Legal liability for such taxes generally attaches at a specific event date (assessment date, lien date, levy date, etc.) determined by state law, but the preferred accounting is a monthly accrual over the fiscal period of the taxing authority for which the taxes are levied. Accrued property taxes are current liabilities, and later revisions of estimated amounts run through the income statement.