Glossary › What are non-current assets?

Non-current assets are assets that are held long-term by a business. They are used in the creation of revenue.

When successfully monitoring and understanding your business’s financial performance and performing successful accounting understanding the concept of non-current assets is highly useful.

Non-current assets (definition)

Non-current assets (also known as long-term or fixed assets) refer to assets held by a business that are expected to be long-term in nature, usually defined as having a useful life of more than 12 months. Non-current assets should also be utilised in the long-term production of revenue and profits. They are not meant to be quickly converted into cash.

Non-current assets examples

Examples of non-current assets include tangible assets and intangible assets such as:

• Property or land.
• Plant and equipment.
• Work-related vehicles.
• Long-term investments.
• Intangible assets like intellectual property.

What are current assets?

Conversely, a current asset is a tangible asset that is easily converted into cash within 12 months. In other words, current assets are highly liquid assets and are expected to have a short lifecycle.

Examples of current assets:

• Cash equivalents.
• Inventory and supplies.
• Accounts receivable.

See related terms
What are fixed assets?
What is working capital?
What is profit?