Non-current assets

Non-current assets are long-lived resources that a company owns or controls, and which are used in the company's business over an extended period, normally more than one year. These assets are not intended to be sold or converted into cash in the short term, but are used to support the company's operations and production over time.

This can cover property, buildings, factories, equipment, vehicles, patents, intangible assets and similar resources.

Types of non-current assets

• Property and buildings: Properties, factories, office buildings or other physical structures that the company owns or leases in order to run the business.
• Equipment and machinery: Production equipment, computers, tools, vehicles and other types of machinery and equipment used in operations.
• Intangible assets: Patents, trade marks, copyrights, software licences and other intangible assets with economic value for the company.
• Investments in subsidiaries or associated companies: Shareholdings in other companies that the company owns for strategic or financial purposes.

How to handle non-current assets in the accounts

Non-current assets are capitalised on the balance sheet and recorded in the company's accounts. On acquisition, non-current assets are recognised at acquisition cost.

After that, the value of the non-current assets can be adjusted over time through depreciation, in order to reflect the loss of value caused by use, wear and tear or equipment becoming technologically obsolete.

What can non-current assets be used for?

Non-current assets are used to support and enable the company's operational activities and production over an extended period. They give the company the physical and intangible resources it needs in order to deliver goods and services to its customers. Non-current assets can also represent values used as security for loans, or as investment objects.

Effective management of non-current assets is important if they are to be used optimally and generate a return for the company. This includes regular maintenance, assessing the need for upgrades or replacements, and an assessment of the loss of value and of the technological developments that may affect the value and usefulness of the non-current assets over time.