Non-Current Assets

Non-Current Assets (Definition)

Non-current assets are assets that are not expected to be converted to cash within one year.

Key aspects of non-current assets include:

1. Also known as long-term assets or fixed assets
2. Include tangible assets like property, plant, and equipment
3. Also encompass intangible assets such as patents, trademarks, and goodwill
4. Recorded on the balance sheet at their historical cost less accumulated depreciation
5. Provide long-term value to a company but are not easily converted to cash
6. Subject to depreciation, amortization, or impairment over their useful life
7. Understanding non-current assets is important for assessing a companys long-term financial position

Proper management and valuation of non-current assets are crucial for accurate financial reporting and strategic planning.