Is Premises a Current Asset?

Written by True Tamplin, BSc, CEPF®

Updated on January 02, 2023

No, premises are not a current asset. A current asset is any asset that will provide an economic value for or within one year. Premises, or the property where business is done, is a part of the property, plants, and equipment, or PP&E, account. All PP&E has a useful life longer than one year, premises included, so it is considered a non-current asset.

Are Premises a Current Asset FAQs

Are premises considered a current asset?

No, premises are not a current asset.

What is a current asset?

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

What are premises?

Premises, or the property where business is done, is a part of the property, plants, and equipment, or PP&E, account.

Why would premises be considered a non-current asset?

All PP&E has a useful life longer than one year, premises included, so it is 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.