Current assets Definition

Case studies

"We couldn't do as good a job as we do without it. ��Ӱ�� gives us the security and confidence that we are best serving our clients because the information we are working on is the most accurate we can get"

Avensure

Access all documents on Current assets

GET ACCESS NOW

GLOSSARY

Published by a ��Ӱ�� In-house Advisor expert

What does Current assets mean?

Assets of a company that are regularly turned over and can readily be converted into cash, including stocks, work in progress, marketable securities and debtors.

Speed up all aspects of your legal work with tools that help you to work faster and smarter. Win cases, close deals and grow your business–all whilst saving time and reducing risk.

EU Accounting Directive—summary of main provisions

EU Accounting Directive—summary of main provisions STOP PRESS: This Practice Note is currently under review in light of major changes to non-financial reporting rules proposed by the Commission pursuant to the omnibus simplification package of 26 February 2025 This Practice Note provides an overview of the main provisions of the EU Accounting Directive (2013/34/EU). Background The EU Accounting Directive, Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC of the European Parliament and of the Council and repealing Council Directives 78/660/EEC and 83/349/EEC (the Accounting Directive) set out a new regime for the form and content of annual financial statements, and had the fundamental objective of modernising and streamlining reporting requirements for the smallest entities (the ‘think small first’ approach). The Accounting Directive was subsequently amended by the Non-Financial Reporting Directive 2014/95/EU of the European Parliament and of the Council of 22 October 2014 as...

UK Listing Rules class tests—fundamentals

UK Listing Rules class tests—fundamentals This fundamentals note considers the class tests in the UK Listing Rules (UKLR) used to classify the size of a transaction undertaken by a company listed in the equity shares (commercial companies) listing category (referred to as the commercial companies category). References to a listed company in this Practice Note are to a company listed in the commercial companies category. Companies with equity shares listed in other listing categories are also subject to rules on transactions under the UKLR but are outside the scope of this Practice Note. What are the class tests used for? The class tests (also referred to as percentage ratios) are a series of tests which are used to assess the size and importance of a transaction undertaken by a listed company or its subsidiary undertakings. The results of the class tests determine how significant the transaction is relative to the listed company and what action under the UKLR, if any, the listed company needs to take. These rules are primarily...

Discover our 5 Practice Notes on Current assets

Balance sheet forecast—law firms

Balance sheet forecast—law firms A balance sheet is simply a snapshot of the financial health of the firm at any given time, ie what the business is worth. It achieves this by showing: • the value of the firm’s fixed assets (eg premises) and current assets (eg work in progress) • how much money is owed in the short term, eg to stationery

Cash and profitability ratio calculations—worked example

Cash and profitability ratio calculations—worked example Cash and profitability ratio calculations Current ratio Formula Calculation Result Result from previous month/year % movement Current assets ÷ Current liabilities 764,400 ÷ 534,200 1.43 1.39 2.88% If the ratio falls below 1.0, the firm has insufficient current assets to pay off its current liabilities when they fall due. Compare this result to the previous current ratio result. If the current ratio is deteriorating and falling close to 1.0, calculate the other ratios to help better understand why the firm is running out of money. WIP days ratio Formula Calculation Result Result from previous month/year % movement WIP at end of period ÷ turnover x 365 187,700 ÷ 1,212,300 x 365 56 days 54 days 3.7% Compare this result to previous WIP days. If the number of days has increased, the firm is taking longer to raise the invoice after recording the time than before. Further investigation should be undertaken to work out why this is and steps taken to speed up...

Dive into our 5 Precedents related to Current assets

Top

Trial

��Ӱ��

GLOSSARY