Current assets deal

There is no single accounting standard dedicated exclusively to "current assets." Instead, the classification, presentation, and measurement of current assets are governed by a framework of various standards depending on the nature of the asset.

Key Standards Governing Current Assets

• Ind AS 1 / AS 1 (Presentation of Financial Statements): This standard provides the primary framework for classifying assets as "current" or "non-current" on the balance sheet. An asset is generally classified as current if it is expected to be realized within 12 months after the reporting period, or if it is held primarily for the purpose of trading, or if it is cash/cash equivalent.

• Ind AS 2 / AS 2 (Valuation of Inventories): This governs the measurement of one of the most common current assets: inventory.

• Ind AS 109 / AS 13 (Financial Instruments / Investments): These standards cover the classification and valuation of current investments (e.g., short-term marketable securities). Specifically, AS 13 explicitly defines a "current investment" as an investment readily realizable and intended to be held for not more than one year.

Summary

In short, there is no one standard for all current assets. You must refer to the specific standard related to the type of asset:

• For classification (what makes it "current"), refer to Ind AS 1 or AS 1.

• For inventory, refer to Ind AS 2 or AS 2.

• For short-term investments, refer to Ind AS 109 or AS 13.

Summarized answer: No single accounting standard covers all current assets. Classification is determined by Ind AS 1 (or AS 1), while specific categories like inventory or investments are governed by their own respective standards (e.g., Ind AS 2 for inventory or AS 13 for investments).