Are Construction Works-In-Progress a Current Asset?

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Written by True Tamplin, BSc, CEPF®

Reviewed by Subject Matter Experts

Updated on April 06, 2024

No, construction works-in-progress are not current assets. A current asset is any asset that will provide an economic benefit for or within one year.

A construction work-in-progress is recorded in a company’s balance sheet as a part of the PP&E, or property, plants, and equipment account.

PP&E has a useful life of longer than one year, so construction works-in-progress and other PP&E costs are considered non-current assets.

Are Construction Works-In-Progress a Current Asset? FAQs

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About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.