What is non-current assets?

Non-current assets or fixed assets is a group belonging to all companies, and which remains in it for more than one year. It is a part of the asset and appears within the situation balance of a company.

Non-current assets are a special part of the business. They are durable and not very liquid, since it takes time to convert them into cash. Like many elements, this is a very important one in the structure of the company. But being long-term investments, they do not serve for the company to get money in a short period of time. This is why this class of assets must be financed by the Net Worth and Non-current liabilities.

To be more specific, we can say that they are resources that serve the company but in the long term, such as computers, vans, patents, etc. The idea that a company should have regarding non-current assets is to keep it for a long period, so that it is profitable. It should be noted that the value of an asset in the accounting books it is equal to the purchase price, including the purchase costs and discounting the annual depreciation of that asset.

Non-current assets

We can intuit which sector a company belongs to according to the type of goods it has in the asset. On the other hand, we have several groups within non-current assets, which are:

  • Long-term financial investments: such as stocks, capital contributions and the acquisition of long-term fixed-income securities.
  • Fixed assets: this includes all the assets that a company may have (real estate, movable and useful assets, machinery ...)
  • Intangible assets: intangible assets are those that produce benefits for the company but cannot be physically quantified (intellectual property rights, patent ...)

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