How to Calculate Non-current Assets?
Non-current assets can be calculated by the following formula:
Non-current Assets = Total Assets – Current Assets
Or
Non-current Assets = Fixed Assets (Tangible + Intangible) + Non-current Investments + Long-term Loans and Advances
Example:
From the information given of the company XYZ Ltd. for the year ending 31st March 2023, Calculate Non-Current Assets.
Additional Information:
- Depreciation to be charged on property, Plant, and equipment is 15%
- Depreciation to be charged on Intangible Assets is 10%
- Long-term assets have been appreciated by ₹65,000.
- Goodwill remains unchanged.
Solution:
In the Books of XYZ Ltd. for the year ending 31st March 2023
So to calculate Non-Current Assets entity may follow a series of steps:
- Determine all the Assets that are owned by the Entity during any Accounting Year.
- Separate all the Assets based on their characteristics and Relevant Holding Period between Current Assets and Non-Current Assets.
- Determine their Individual Carrying Amount for the Respective Accounting Year
- Adjust their carrying value by applying the applicable rate of Depreciation and Any Revaluation (if any).