What Is a Non-Current Asset?

Non-current assets refer to assets that cannot be realised or consumed within a business cycle of one year or more. ^[1] Non-current assets refer to assets other than current assets, which mainly include holdings due investments, long-term receivables, long-term equity investments, construction materials, investment real estate, fixed assets, construction in progress, intangible assets, long-term expectations Amortized expenses, available-for-sale financial assets, etc.

Non-current assets

"

The difference between non-current assets and current assets:

An enterprise has its own certain amount of assets, and these assets are also divided into two types of current assets and non-current assets.

Non-current assets is a concept relative to current assets, which has the characteristics of occupying a large amount of funds, slow turnover, and poor liquidity. Therefore, its asset management and accounting also have special requirements.

The accounting content of non-current assets mainly includes: long-term investments, fixed assets, intangible assets, and long-term deferred expenses.

Due to the large amount of funds occupied by this type of assets and the long time the enterprise holds, it will affect the financial status and operating results of multiple accounting periods in which the enterprises are interconnected. Therefore, their management and accounting treatment should be based on their own different Features, using different procedures and methods.