Is Plant Assets a Current Asset?

Written by True Tamplin, BSc, CEPF®

Updated on January 02, 2023

No, plants and plant assets are not current assets. A current asset is any asset that will provide an economic benefit for or within one year. Plants are a part of the property, plants, and equipment, or PP&E, account. PP&E has a useful life longer than one year, so plants are considered a non-current asset.

Are Plants Current Assets FAQs

Are plants current assets?

No, plants and plant assets are not current assets.

What is a current asset?

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

What are plants in accounting?

Plants are a part of the property, plants, and equipment, or PP&E, account.

Why would plants be considered a non-current asset?

PP&E has a useful life longer than one year, so plants are considered a non-current asset.

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.