Non Current Assets/ Long-term Assets

Non-current assets are assets which are expected to be converted into cash in more than 12 months from the reporting period. The other type of asset is current asset which is expected to be converted in to cash within 12 months from the reporting period.

Non-current assets are also called illiquid assets and as they are used to bring future economic benefit for period more than 12 months, depreciation is charged over them to follow the matching principle of accounting. It is also famous with its other names such as long lived assets or long term assets.

Types 

The following are the most common types of non-current assets:

  • Property, plant & equipment
  • Long term deposits
  • Long term investments
  • Long term notes receivable
  • Intangible assets

Following are the most common examples of non-current assets:

Goodwill – it is an intangible asset which refers to the reputation of the business in the industry.

Trademarks – it is a symbol or sign used to different your product or services from the rivals.

Land – it is a portion of the earth in the name of the entity, whether in use or in idle state.

Building – It is the premise which is in the name of the entity where it is running its business or has rented out the premises on the rent agreement to a tenant.

Furniture and fixture – It refers to the all type of chairs, table, wood and glass work inside the entity’s premises.

Office equipment – It includes items such as microwave oven, lockers, security cameras, DVR.

Computers and accessories – It includes desktop computers, laptops, servers and other networking devices.

Vehicles – it includes cars, trucks, wagons and bike etc.

Deferred income taxes – It refers to the excess income taxes paid to the government authorities.