Cal. Code Regs. tit. 2 § 1091.5
Asset and liability accounts are grouped in current and long-term sections. A current asset is one normally convertible to cash, or a cash-equivalent benefit, within twelve months. Other assets are labeled 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, it is not intended that the accounts be subsequently adjusted for transitions from long-term to current. Balance sheets should reflect the correct status as of the date of the statement, but reclassification entries need not formally be posted to the accounts.
Cal. Code Regs. Tit. 2, § 1091.5