California Code of Regulations
Title 2 - Administration
Division 2 - Financial Operations
Chapter 2 - State Controller
Subchapter 3 - Accounting Procedures for Special Districts
Article 4 - Harbor and Port Districts
Section 1061.8 - Current and Long-Term Assets

Assets and liabilities have been grouped as current and long-term. A current asset is one normally convertible to cash, or a cash-equivalent benefit, within twelve months. Other assets are labelled long-term, or some special category of long-term, i.e., Deferred Charges, etc. Similarly, current liabilities are those which will become due and payable within twelve months.

Status of the asset at date of acquisition, or liability at time of incurrence, governs the account to which posted. However, except for matured bonds payable it is not intended that the accounts be subsequently adjusted for each transition from long-term to current. Balance sheets should reflect correct status at the statement date, but reclassification entries need not be posted to the accounts.