What is a noncurrent asset?

Definition of Noncurrent Asset

A noncurrent asset is an asset that is not expected to turn to cash within one year of date shown on a company's balance sheet. (This assumes that the company has an operating cycle of less than one year.)

A noncurrent asset is also known 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

Examples of noncurrent or long-term assets include:

  • Cash surrender value of life insurance
  • Bond sinking fund
  • Certain investments in other corporations
  • Plant assets such as land, buildings, equipment, furnishings, vehicles, leasehold improvements
  • Intangible assets such as goodwill, trademarks, mailing lists

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