USA Does Land count as a current asset?

[bobAnInvestorNJ]

Consider a home builder that buys land in relatively large tracts and then builds homes on the land. From the time the land is purchased to the homes are sold it is likely to be 2 or more years.

It is my understanding that under GAAP inventory is considered a current asset. It is also my understanding under GAAP that for a home builder land would be considered a current asset. It does not seem right to me that for a home builder that land should be considered a current asset. Is it?

 

[kirby]

The technical definition of current assets is that which a company expects to convert into cash, sell or consume either in one year or in the operating cycle, if longer.
Given the above, there is enough wiggle room for land to be classed as current in your example.

 

[stevuke79]

If someone is flipping properties then the land/properties is COGS and yes, it's inventory.