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. 

Contents
Financial Ratios Accounting Cycle Accounting Principles Financial Accounting Basics Financial Statements Reporting Bad Debts Current Assets Long-term Assets Capital Expenditure Property Plant and Equipment Revenue/ Ordinary Expenditure Exchange of Fixed Assets Lump Sum Purchase of Fixed Assets Capitalization of Borrowing Cost Asset Retirement Obligation Accounting Amortization of Intangible Assets Depletion Expense Accumulated Depreciation Intangible Assets Impairment of Fixed Assets Disposal of Fixed Assets Accounting for Investments Voucher System Partnership Depreciation Work Sheet - 10 Column Work Sheet Difference Between Reserve and Fund Accounting for Leases Capital reduction and reconstruction Absorption of Company Amalgamation Accounting for Installment Sales Basis of Recording Profit and Loss Branch Accounting Construction Contracts Revenue Recognition Accounting for Groups Financial Analysis Events After the Balance Sheet Date Deferred Tax Cost Accounting Activity Based Costing (ABC) Throughput Accounting Relevant Cost Break Even Analysis Standard Costing Inventory Management Payroll Accounting Royalty Accounting Statistics Master Budget Salary Income Microsoft Excel Tutorial Other Topics Share or Stock Valuation Model Financial Management Topics Kinds of Endorsement Letter of Credit, Kinds and Its Advantages/ Utilities Modern Functions of a Commercial Banks Difference Between Secured And Unsecured Loan Excel conditional formatting red if negative green if positive How to Remove Extra Spaces in Excel Result Card or Result Sheet Creation Using Excel