What are non-current assets?
Non-current assets refer to long-term resources owned by a business which are not expected to be converted into cash within 12 months. These assets support operations over an extended period and are not intended for short-term sale.
What are examples of non-current assets?
Common examples include property, machinery, vehicles, long-term investments, and intangible assets such as patents and trademarks. These assets often form the operational backbone of a business.
Why are non-current assets important?
They enable a business to produce goods, deliver services, and generate revenue over time. Strong non-current assets often indicate long-term stability and investment in growth.
How are non-current assets recorded?
They are recorded on the balance sheet at cost and adjusted over time through depreciation or amortisation, depending on whether they are tangible or intangible.
How do non current assets differ from current assets?
Non current assets are held for long term use, while current assets are expected to be converted into cash within a year.