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Can U.S. Treasury notes purchased by a client 5 years ago as an investment be classified...

Can U.S. Treasury notes purchased by a client 5 years ago as an investment be classified as a current asset now that they are only two months away from maturity?

and can I get a source on this.

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Answer #1

Yes, those U.S. Treasury notes purchased 5 years ago can be classified as current asset because the notes are maturing within the next 12 months,(only two months away from maturity) .

As per the Classification for current assets letter (f), current assets include marketable securities like

  • cash investment available for current operations
  • trading securities such as investments in debt and equity securities

According to ASC 320/10-overall /20 - Glossary: any security which entitles a creditor relationship with an entity is a debt security .U.S. Treasury notes are listed as a debt security.

ANY CORRECTIONS?

JUST LEAVE A COMMENT BELOW

THANK YOU!

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