Is Construction in Progress classified as current asset?

Yes, Construction in Progress (CIP) is typically classified as a current asset on the balance sheet. It represents costs incurred for construction projects that are not yet completed and are expected to be finished within a year or within the operating cycle. Once the construction is complete, the costs are reclassified to a fixed asset, such as property, plant, or equipment. However, if the project extends beyond one year, it may be classified as a long-term asset instead.