Noncurrent Assets

AAA

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.

INVESTOPEDIA EXPLAINS '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.

VIDEO

Loading the player...
RELATED TERMS
  1. Restricted Cash

    Monies earmarked for a specific purpose and therefore not available ...
  2. Noncurrent Liabilities

    A business's long-term financial obligations that are not due ...
  3. Balance Sheet

    A financial statement that summarizes a company's assets, liabilities ...
  4. Intangible Asset

    An asset that is not physical in nature. Corporate intellectual ...
  5. Property, Plant And Equipment - ...

    A company asset that is vital to business operations but cannot ...
  6. Capitalize

    An accounting method used to delay the recognition of expenses ...
RELATED FAQS
  1. 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 >>
  2. 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 >>
  3. 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 >>
  4. 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 >>
  5. 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 >>
  6. What are some examples of a deferred tax liability?

    In the United States, laws allow companies to maintain two separate sets of books for financial and tax purposes. Because ... Read Full Answer >>
Related Articles
  1. Economics

    What are Noncurrent Assets?

    Noncurrent assets are property that a company owns that will last for more than one year.
  2. Investing Basics

    Patents Are Assets, So Learn How To Value Them

    Innovation is the key to staying on top. Find out how companies protect their ideas and how to figure out how much they're worth.
  3. Personal Finance

    Can You Count On Goodwill?

    Carefully examine goodwill and its sources before considering the value of your investment.
  4. Investing Basics

    How To Evaluate A Company's Balance Sheet

    Asset performance shows how what a company owes and owns affects its investment quality.
  5. Markets

    Intangible Assets Provide Real Value To Stocks

    Intangible assets don't appear on balance sheets, but they're crucial to judging a company's value.
  6. Economics

    What is a Share Premium Account?

    The share premium account is an equity account found on a company’s balance sheet.
  7. Investing

    What is Comprehensive Income?

    Comprehensive income is a part of the owners’ equity section of the balance sheet.
  8. Economics

    Explaining Financial Analysis

    Financial analysis is a general term that refers to using financial data to make business and investment decisions.
  9. Economics

    What Does Debit Mean?

    Debit is an accounting term used to refer to the left side of an accounting journal entry. Each debit must be offset by an equal credit entry.
  10. Taxes

    What's an Audit?

    An audit is an objective examination of accounting records that makes sure the records are a fair and accurate representation of the transactions they claim to represent.

You May Also Like

Hot Definitions
  1. Mixed Economic System

    An economic system that features characteristics of both capitalism and socialism.
  2. Net Worth

    The amount by which assets exceed liabilities. Net worth is a concept applicable to individuals and businesses as a key measure ...
  3. Stop-Loss Order

    An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit ...
  4. Covered Call

    An options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset ...
  5. Butterfly Spread

    A neutral option strategy combining bull and bear spreads. Butterfly spreads use four option contracts with the same expiration ...
  6. Unlevered Beta

    A type of metric that compares the risk of an unlevered company to the risk of the market. The unlevered beta is the beta ...
Trading Center