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long-term / non current - short term / current

Discussion in 'Financial Terms' started by blue-eyes, Jun 17, 2011.

  1. blue-eyes

    blue-eyes Senior Member

    English - Spain
    Is long-term interchangeable with non-current? and is short-term interchangeable with current? I have seen both used in annual accounts. Is there any rule as to use? i.e. if applying to assets, debt, investments, credits, etc. etc.. I am unsure whether to use non-current and current, throughout, or long-term and short-term throughout, as even on a single balance sheet I see a mixture of all 4 terms.

    thanks for any clarification
     
    Last edited: Jun 17, 2011
  2. Fernando Senior Member

    Madrid
    Spain, Spanish
    Short answer: Yes, they are.

    Long answer:

    1) Many times there are laws that set what is current (usually <1 year) and non-current. It depends on local legislation.

    2) Furthermore, it is possible to use "middle-term", but there is not not-so-current. The borders short/middle/long term are vague and depend on the industry. Your stock trader could consider a long-term investment something your accountant consider it is 'current' (but maybe also 'short term').

    3) Fixed (non-current) assets are usually long-term investment but, since they do not have a set maturity are rarely named as 'long-term'.

    4) Current usually implies 'easily traded'.

    Of course, a native could expand/correct my try.
     

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