- Assets bought not for resale but to be used in the operations of the business with useful lives of MORE THAN ONE YEAR.
- Divided into three categories namely:-
- (a) TANGIBLE non-current assets
- (b) INTANGIBLE non-current assets and
Tangible non-current assets:-
- Machinery, land and building, office equipment, furniture and fittings, motor vehicles,etc
Intangible non-current assets:-
- Trademark, goodwill, patterns, franchise,etc
- Quoted and unquoted Investment, fixed deposits maturity more than 1 year,etc
- Assets that are either cash or those than can be converted into cash within one year.
- Assets which constantly change their form during an accounting period.
- Examples are Inventory/stock, accounts receivables, cash at bank and cash in hand