Classification as per schedule vi

Current Status doesn't exceed 1 year....!!

Thank You.

Whether it means if operating cycle is more than 1 year then inventory more than 1 year will be classified in non current asset. ? or only if operating cycle is less than 6 months then inventory( raw material,WIP, finished goods) which is 1 year old will be classified in current asset..?

regards

An operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents. Where the normal operating cycle cannot be identified, it is assumed to have duration of 12 months.

inventory will be inventory so should be current