Non-current assets are assets that will be useful for more than one year; they are often referred to as long-lived assets. Non-current assets include property, plant, and equipment (PPE) – items used to conduct the operations of the business. Some examples of PPE are: land, buildings, equipment, and motor vehicles.
Other types of non-current assets include long-term investments and intangible assets. Long-term investments include notes receivable that will be paid by customers over a period greater than one fiscal year and investments in shares and debt of other companies that will be held for more than one year. Intangible assets are resources that do not have a physical form and whose value comes from the rights held by the owner. They are used over the long term to produce or sell products and services and include copyrights, patents, trademarks, and franchises. These types of assets will be discussed in detail in a later chapter.
- 1220 reads
