What are Non-Current Assets?

Non-current Assets can be defined as those assets that are relatively permanent and are needed for the production or sale of goods or services. Non-current assets are those assets that can not be intended to be converted into cash within 1 year. They are purchased with the objective of increasing the working capacity, and they are expected to help the entity by increasing their business income.

Non-current assets are capitalised instead of being expensed out, it is carried as a balance sheet item on the asset side and their value is reduced by allowing depreciation over their useful life. Non-current assets can also be characterised as an asset that will economically benefit for more than one financial year in the future. Non-current assets can be either tangible or intangible. Examples of tangible Non-Current assets can be Plant, Property and Equipment, machinery, etc. and examples of Non-Current intangible assets can be Intellectual property, Softwares, Copyrights, etc.