Is Accumulated Depreciation a Current Asset?

Written by True Tamplin, BSc, CEPF®

Updated on January 02, 2023

No, accumulated depreciation is not a current asset for accounting purposes. In fact, depreciation in any form is not a current asset. Depreciation is listed as a contra account on a company’s balance sheet. This means that it accounts for a reduction of the gross amount listed for the fixed assets with which it is paired. Even though it is listed along with assets, depreciation does not provide any economic value. Rather, it is an amount of value that has already been used.

Is Accumulated Depreciation a Current Asset FAQs

Is accumulated depreciation a current asset?

No, accumulated depreciation is not a current asset for accounting purposes.

What is a current asset?

A current asset is any asset that will provide an economic benefit for or within one year.

What is accumulated depreciation?

Accumulated depreciation accounts for a reduction of the gross amount listed for the fixed assets with which it is paired.

Why isn't accumulated depreciation a current asset?

Even though it is listed along with assets, depreciation does not provide any economic value. Rather, it is an amount of value that has already been used.

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, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.