Non-current assets (definition)
Non-current assets are assets and property owned by a business that are not easily converted to cash within a year. They may also be called long-term assets.
Non-current assets are for long-term use by the business and are expected to help generate income. Non-current assets commonly include:
long-term investments such as such as bonds and stocks
fixed assets such as property, plant and equipment
intangible assets such as copyrights and patents
Non-current assets are capitalised instead of being expensed like current assets. Rather than listing the asset as an expense on the income statement, the asset is added to the company’s balance sheet and depreciated over its useful life.
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Disclaimer
This glossary is for small business owners. The definitions are written with their requirements in mind. More detailed definitions can be found in accounting textbooks or from an accounting professional. Xero does not provide accounting, tax, business or legal advice.
