Non-current assets, also known as long-term assets, are assets that a company does not expect to convert to cash within one year or within its operating cycle, whichever is longer. Includes the following: Property, plant, and equipment (PPE): These are the physical, tangible assets that a company uses in its operations, such as buildings, machinery, vehicles, and office equipment. Goodwill: It is an intangible asset that appears on a company's balance sheet when the company acquires another business for a price higher than its book value of equity. Other intangible assets: These are non-physical assets that have value due to the special rights or privileges they provide to the company. They include patents, copyrights, brands, trademarks, and software. Long-term receivables: These are amounts due to the company that are not expected to be collected within one year. Deferred tax assets: These arise due to timing differences between tax and accounting rules and allow for future tax savings. Long-term investments: These are assets that a company intends to hold for more than a year, including bonds, shares of other companies, real estate, or any other form of investment that can deliver benefits over time.
Learn Non-current Assets with interactive examples and practice exercises in our Balance Sheet module.
This interactive learning module helps you understand Non-current Assets through hands-on practice and real-world examples.