What are non-current assets?

Non-current assets are classified as long-term assets, meaning they are not intended for sale or conversion into money within a given fiscal year. Companies typically hold non-current assets for more than one accounting cycle as these assets are expected to generate benefits for the organizations over a significant amount of time.

Here are some common examples of non-current assets:

• Properties, plants, and equipment

This includes physical assets, such as machinery, factories, property, and vehicles that are used in the production process of specific goods, products, or services.

• Intangible assets

Intangible assets are financial assets that are related to claims on future cash flows or other kinds of financial assets. These items represent financial instruments or contracts that have a certain amount of value and can be sold, bought, or traded on financial markets. This includes things like:

• Stocks

• Bonds

• Mutual funds

• EFTs

• Real estate

• Other investments

All of these intangible assets may be considered non-current assets as long as the company that possesses them does not plan on touching or cashing them out within a given fiscal year. Other types of intangible assets that have value to a company, but cannot be touched, include:

• Patents

• Trademarks

• Goodwill

All of these non-physical assets can fall under the category of non-current assets.

• Long-term receivables

Long-term receivables refer to any loans or other kinds of receivables that will not be collected within the next fiscal year.

• Deferred tax assets

These are non-current assets that represent future tax benefits attributed to temporary differences between tax and accounting rules.