What are Non Current Assets? Examples

Non Current Assets Definition:

A non-current asset is an asset that the company acquires or invests, but the value of that investment does not recur within an accounting year. These type of investments lasts for long and cannot be easily liquidated into cash and can generate economic benefits to the company for more than a year.

In other words, the company capitalises the cost of the assets or investment for a long time or many years, rather than evaluating it within the year of purchase of the asset. Non-current asset appears in the balance sheet of the company.

List of Non-Current Assets:

Property, plant and equipment: These non-current assets are incorporate of both tangible and fixed assets and cannot be liquidated into cash easily. Which includes:

  • Property like land, building, etc.,
  • Plant-like manufacturing companies
  • Equipment, machinery

Intangible Assets: This asset does not have a physical appearance and can be intellectual properties. It is considered as a non-current asset because it cannot be liquidated to cash with 12 months of the investment. Some examples are:

  • Patent
  • Trademark
  • Copyright

Additional Reading: List of Current Assets

Balance Sheet Categorisation

  • Non-current assets are categorised on the balance sheet under the heading of investment, property, plant, equipment, intangible assets, etc.,
  • The assets are classified according to the segment of the balance sheet
  • Investments are always labelled as a non-current asset only if the total expected return is not expected within the next 12 months of the balance sheet
  • Property, plant, land, buildings, and machinery including vehicles are fixed asset
  • Intangible assets are goods that have no physical presence
  • Intangible assets may also arise from the sale or purchase of a business unit

Students can also learn: Difference between Assets and Liabilities


Balance Sheet

December 21, 2018



Current Assets Current Liabilities
Cash                                  XXX Accounts Payable             XXX
Short-term Investments    XXX Salaries Payable                XXX
Accounts Receivables      XXX Interest Payable                XXX
Inventories                         XXX Taxes Payable                    XXX
Prepaid Insurance             XXX


Current position of note    XXX


Long-term Investments Long-term Liabilities
Stock Investments             XXX Notes Payable                   XXX
Cash Value of Insurance   XXX


Bank Loan                        XXX
Property, Plant and Investment Mortgage Obligation        XXX


Deferred Income Taxes    XXX


Buildings & Equipments  XXX

Total Liabilities


(-)Accum. Depreciation (XXX)



Intangible Assets Stockholders’ Equity


Capital Stock                    XXX
Other Assets Retained Earnings            XXX
Receivables for the employee


Total Stockholders’ Equity


Total Assets


Total Liabilities and Equity


The above mentioned is the concept, that is elucidated in detail about ‘What are Non-Current assets?’ for the Commerce students. To know more, stay tuned to BYJU’S.


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