Here’s a detailed explanation of all Assets items on the Balance Sheet as per IFRS:
- Current Assets
Current Assets are expected to be realized, sold, or consumed within one year or the operating cycle, whichever is longer.
a. Cash and Cash Equivalents
Highly liquid assets that are readily convertible to cash. Examples:
Cash in hand and at bank
Short-term investments with maturity of 3 months or less
b. Trade Receivables (Accounts Receivable)
Amounts due from customers for goods sold or services provided, usually within a short credit period.
c. Inventories
Assets held for sale in the ordinary course of business or to be used in production. Types:
Raw Materials
Work-in-Progress
Finished Goods
d. Other Current Financial Assets
Short-term investments or financial assets, including:
Short-term loans and advances
Derivative financial instruments
e. Prepayments
Payments made in advance for goods or services to be received in the future (e.g., insurance, rent).
f. Current Tax Assets
Tax payments made that exceed the tax liability for the period, recoverable from the tax authority.
- Non-Current Assets
Non-Current Assets are long-term assets not expected to be converted into cash or consumed within a year.
a. Property, Plant, and Equipment (PPE)
Tangible assets held for production, supply of goods or services, or administrative purposes. Examples:
Land
Buildings
Machinery
Vehicles
b. Intangible Assets
Non-physical assets with identifiable value, typically resulting from legal or contractual rights. Examples:
Patents
Trademarks
Goodwill (arising from business combinations)
c. Investment Property
Property held to earn rental income or for capital appreciation
