Non-current Asset

What is a Non-current Asset?

Non-current assets, also known as long-term assets, are resources or items owned by a company that are not expected to be converted into cash or used up within one year of the balance sheet date. These assets provide value and economic benefits to a business over multiple years.

Short Description: Long-term resources owned by a company, expected to provide future economic benefits beyond one year.

• Tangible Non-current Assets: Physical items such as machinery, buildings, and equipment.
• Intangible Non-current Assets: Non-physical items such as patents, trademarks, and goodwill.
• Investment Non-current Assets: Long-term financial investments like stocks or bonds meant to be held for over a year.

These assets are crucial for the operational activities of a business and are often a significant part of the company's capital investment. Proper management of non-current assets is vital for sustaining productivity and growth.