A noncurrent asset is an asset that is not likely to turn to unrestricted cash within one year of the balance sheet date. (This assumes that the company has an operating cycle of less than one year.)
A noncurrent asset is also referred to as a long-term asset.
Noncurrent assets are reported under the following balance sheet headings:
- Investments (long-term)
- Property, plant and equipment
- Intangible assets
- Other assets
Examples of noncurrent assets include the cash surrender value of life insurance, a bond sinking fund, certain investments in other corporations, land, buildings, construction in progress, equipment, furnishings, vehicles, leasehold improvements, some deferred income taxes, goodwill, trademarks, and unamortized bond issue costs.