Noncurrent Assets

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DEFINITION of 'Noncurrent Assets'

A company's long-term investments, in the case that the full value will not be realized within the accounting year. Noncurrent assets are capitalized rather than expensed, meaning that the company allocates the cost of the asset over the number of years for which the asset will be in use, instead of allocating the entire cost to the accounting year in which the asset was purchased.

BREAKING DOWN 'Noncurrent Assets'

Depending on the type of asset, it may be depreciated, amortized or depleted, but these are all just technical terms for allocation.

Examples of noncurrent assets include investments in another company, intangible assets such as goodwill, brand recognition and intellectual property, and property, plant and equipment. Noncurrent assets appear on the company's balance sheet.

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RELATED FAQS
  1. Do prepayments provide working capital?

    Prepayments, or prepaid expenses, are typically included in the current assets on a company's balance sheet, as they represent ... Read Full Answer >>
  2. What is the difference between noncurrent assets and noncurrent liabilities?

    Noncurrent assets are a company's assets that are not expected to be liquidated within one fiscal year, while noncurrent ... Read Full Answer >>
  3. Which financial statement can I find noncurrent assets on?

    The value of a company's noncurrent assets is located on its balance sheet. Noncurrent assets are a company's resources that ... Read Full Answer >>
  4. What are some common examples of noncurrent assets?

    Noncurrent assets are not expected to be liquidated within one year. Some common examples of noncurrent assets are tangible ... Read Full Answer >>
  5. Are noncurrent assets depreciated?

    Depreciation is an accounting method that allocates a tangible asset's cost over its life. Companies usually depreciate noncurrent, ... Read Full Answer >>
  6. What is the difference between current and noncurrent assets?

    Assets can be divided into two categories: current and noncurrent. Current assets are items listed on a company's balance ... Read Full Answer >>
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