Noncurrent assets

Noncurrent assets are the assets that are expected to be converted into cash after a year or normal operating cycle, whichever is longer.
Noncurrent assets include property, plant and equipment (PP&E), intangible assets and long-term investments.
Property, plant and equipment include land, buildings, equipment, vehicles, furniture and fixtures.
Intangible assets do not have physical substance, so that they are not tangible. Intangible assets include goodwill, patents, trademarks and copyrights.
Noncurrent assets also include long-term investment assets that are expected to be converted into cash after a year.

Property, Plant and Equipment (PP&E)
In the property, plant and equipment section, the following assets are presented:
1. Land
2. Buildings
3. Machinery and equipment
4. Vehicles
5. Furniture and fixtures

[Note]
Accumulated depreciation is a contra-asset account that is subtracted from property, plant and equipment.

Intangible Assets
The following assets are the examples of intangible assets:
1. Goodwill
2. Patents
3. Trademarks
4. Copyrights

Long-term Investments
If the entity has the intention to keep the investments in debt and equity securities for more than a year from the end of the reporting period, such investments are presented as long-term investments.

Review Questions
1. What is a noncurrent asset?
Noncurrent asset is an asset that is expected to be converted into cash after a year.

2. What are the examples of noncurrent assets?
Property, plant and equipment, intangible assets and long-term investments are the examples of noncurrent assets.

3. What are the examples of property, plant and equipment?
Land, buildings, machinery, equipment, vehicle, furniture and fixtures are the examples of property, plant equipment.

4. What are the examples of intangible assets?
Goodwill, patents, trademarks and copyrights are the examples of intangible assets.

 

© AccountingInfo.com