An asset shall be classified as current when it satisfies any of the following criteria:- (a) it is expected to be realized in, or is intended for sale or consumption in, the company’s normal operating cycle; (b) it is held primarily for the purpose of being traded; (c) it is expected to be realized within twelve months after the reporting date; or (d) it is Cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date. All other assets shall be classified as non-current.”
Accrodingly, If you expect to consume or sale the inventory in normal operating cycle of your company then it would be classified as current asset.
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