No, plants and plant assets are not current assets. A current asset is any asset that will provide an economic benefit for or within one year. Plants are a part of the property, plants, and equipment, or PP&E, account. PP&E has a useful life longer than one year, so plants are considered a non-current asset.
Is Plant Assets a Current Asset? FAQs
No, plants and plant assets are not current assets.
A current asset is any asset that will provide an economic benefit for or within one year.
Plants are a part of the property, plants, and equipment, or PP&E, account.
PP&E has a useful life of longer than one year, so plants are considered non-current assets.
Companies typically record plant assets at their original purchase price and then depreciate them over their useful lives. Depreciation is the process of allocating a portion of the cost to each accounting period in which it is used and expensed as an operating expense on the company’s income statement.
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
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