Non-current asset
Non-current asset: a resource a business intends to use, not sell, for more than twelve months — property, plant, equipment or intangibles — shown below current assets on the balance sheet.
FrameworkIAS 1
See it move
A balance sheet lists land and buildings at €150,000, machinery at €62,000 and a patent at €8,000. Because the business intends to keep using all three beyond twelve months, they combine into non-current assets of €150,000 + €62,000 + €8,000 = €220,000, while cash, inventory and receivables stay classified as current assets.
Check yourself
A company's balance sheet lists: cash €5,500, inventory €12,000, trade receivables €6,300, equipment €45,000, buildings €210,000, a trademark €15,000, and a short-term investment held for trading €3,000 (expected to be sold within weeks). What is the total of non-current assets?