Non-current assets are assets that include amounts expected to be recovered more than 12 months after the reporting period. Non-current assets is not to be converted to cash within 12 months of the balance sheet date, and is not expected to be consumed or sold within the normal operating cycle of a firm (in contrast to current assets). Non-current assets are formally defined as anything not classified as a current asset. Non-current asset are not directly sold to a firm's consumers (end-users).
IFRS use the term "non-current" to include tangible, intangible and financial assets of a long-term nature. Non-current assets include:
Noncurrent assets are a company's long-term investments that have a useful life of more than one year. Noncurrent assets cannot be converted to cash easily. They are required for the long-term needs of a business and include things like land and heavy equipment.
Non-current assets may be tangible (like physical property) or intangible (like intellectual property). Key categories of non-current assets include property, plant & equipment (PP&E); investments; goodwill; and “other” intangible assets.
No, office furniture is not a current asset. A current asset is any asset that will provide an economic value for or within one year. Office furniture is expected to have a useful life longer than one year, so it is recorded as a non-current asset.
Inventory is regarded as a current asset as the business as it includes raw materials and finished goods that can be converted into cash within one year or less.
Noncurrent assets traditionally include real estate properties, manufacturing plants, equipment, and other tangible or fixed physical items that are highly illiquid because they can't be expeditiously sold for cash.
Examples of noncurrent assets include notes receivable (notice notes receivable can be either current or noncurrent), land, buildings, equipment, and vehicles. An example of a noncurrent liability is notes payable (notice notes payable can be either current or noncurrent).
Goodwill is recorded as an intangible asset on the acquiring company's balance sheet under the long-term assets account. Goodwill is considered an intangible (or non-current) asset because it is not a physical asset like buildings or equipment.
Cash, marketable securities, inventory, and accounts receivable are a few examples of current assets. Real estate, long-term investments, trademarks, and PP&E are a few examples of noncurrent assets.
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