Defining Non-Current Assets
Non-current assets (also called fixed assets ), are assets that are stationery in nature. Moreover, they tend to remain in the business for a longer period of time. These assets are not involved in the day-to-day operations of the business, and cannot be used to meet short-term, operational obligations of the business.
Fixed assets include immovable property, plant/production units, equipments and in some modern business definitions, also human resources. According to accounting principles followed worldwide, non-current assets generally include land, buildings, motor vehicles, furniture and office property.
Fixed assets are assets whose present value can favorably be accrued to the business at some point of time and thus, indirectly generating an income. It might be noted that unlike current assets, these assets can’t be sold to the general consumer base, or liquidated instantly to cash. In addition to this, fixed assets are liable to undergo depreciation in most cases. Moreover, in many countries they are subject to tax rebates and certain percentage-exemptions as well.