{"id":25284,"date":"2023-10-18T08:40:48","date_gmt":"2023-10-18T08:40:48","guid":{"rendered":"https:\/\/swoopfunding.com\/us\/?post_type=business-glossary&p=25284"},"modified":"2025-04-24T14:07:54","modified_gmt":"2025-04-24T14:07:54","slug":"non-current-assets","status":"publish","type":"business-glossary","link":"https:\/\/swoopfunding.com\/us\/business-glossary\/non-current-assets\/","title":{"rendered":"Non-current assets"},"content":{"rendered":"

Definition<\/h3>\n

Non-current assets, also known as long-term assets or fixed assets<\/a>, are a category of assets listed on a company’s balance sheet. They represent valuable resources that are expected to provide economic benefits to the company for more than one year. <\/span><\/p>\n

What are non-currents assets?<\/h3>\n

Non-current assets play a crucial role in a company’s operations and are typically essential for its long-term success.\u00a0<\/span><\/p>\n

Non-current assets can be broadly categorised into two main types:\u00a0<\/span><\/p>\n

    \n
  1. Tangible assets<\/b>: These have a physical form and can be touched or seen. Examples include property, plant, equipment, vehicles, and machinery.<\/span><\/li>\n
  2. Intangible assets<\/b>: These lack a physical presence but hold significant value for a company. Examples include patents, copyrights<\/a>, trademarks<\/a> and goodwill.<\/span><\/li>\n<\/ol>\n

    Tangible non-current assets are subject to depreciation<\/a>, which reflects the gradual reduction in their value over time. Intangible assets are typically amortised, which is the process of allocating the cost of the asset over its useful life.<\/span><\/p>\n

    Non-current assets can serve two primary purposes:<\/span><\/p>\n

      \n
    1. Investment<\/b>: They can be assets held for capital appreciation or for generating rental income.\u00a0<\/span><\/li>\n
    2. Production<\/b>: These assets are used in the production or provision of goods and services.\u00a0<\/span><\/li>\n<\/ol>\n

      Non-current assets are recorded on the balance sheet<\/a> at their original cost. Over time, their value may be adjusted through depreciation, impairment, or revaluation. If there is a significant decline in the value of a non-current asset below its carrying amount and this decline is expected to be permanent, the asset is said to be impaired. In such cases, the asset is written down<\/a> to its recoverable amount.<\/span><\/p>\n

      Companies are required to disclose detailed information about their non-current assets in their financial statements<\/a>. This includes the type of assets, their carrying amounts, any accumulated depreciation or amortisation, and any impairment losses.<\/span><\/p>\n

      Example of a non-current asset<\/h3>\n

      Let’s consider a manufacturing company called “Tech Machinery Inc.” that purchases a piece of equipment to be used in its production process. The equipment has a useful life of 10 years and is expected to generate value for the company over multiple accounting periods.<\/p>\n

      In this example, the equipment purchased by Tech Machinery Inc. would be classified as a non-current asset on the company’s balance sheet. This is because the equipment is not intended for immediate sale, but rather for long-term use in the company’s operations.<\/p>\n","protected":false},"author":1,"template":"","class_list":["post-25284","business-glossary","type-business-glossary","status-publish","hentry"],"acf":[],"featured_image_urls_v2":{"full":"","thumbnail":"","medium":"","medium_large":"","large":"","1536x1536":"","2048x2048":"","image_blog":"","image_podcast":"","image_banking":"","image_blog_internal":"","image_blog_medium":"","image_single_banking":""},"post_excerpt_stackable_v2":"

      Definition Non-current assets, also known as long-term assets or fixed assets, are a category of assets listed on a company’s balance sheet. They represent valuable resources that are expected to provide economic benefits to the company for more than one year. What are non-currents assets? Non-current assets play a crucial role in a company’s operations and are typically essential for its long-term success.\u00a0 Non-current assets can be broadly categorised into two main types:\u00a0 Tangible assets: These have a physical form and can be touched or seen. Examples include property, plant, equipment, vehicles, and machinery. Intangible assets: These lack a physical…<\/p>\n","category_list_v2":"","author_info_v2":{"name":"root","url":"https:\/\/swoopfunding.com\/us\/author\/root\/"},"comments_num_v2":"0 comments","_links":{"self":[{"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/business-glossary\/25284","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/business-glossary"}],"about":[{"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/types\/business-glossary"}],"author":[{"embeddable":true,"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/users\/1"}],"wp:attachment":[{"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/media?parent=25284"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}