Non-current assets, also known as long-term assetsrefers to the assets that the enterprise expects to use or dispose of in more than one accounting period in the future. These assets are typically not used for day-to-day business activities, but rather to support the long-term operation and growth of the business. The value of illiquid assets typically does not change significantly in a short period of time, so they have less of an impact on a business's financial health, but are still critical to the long-term success of a business.
It is relativeLiquid assets (assets that can be realized or consumed within a year).In other words, it reflects the stability and long-term nature of the company's long-term investment and capital structure.
.Fixed assets
Fixed assets are the basis of an enterprise's production and operation, and they usually have a long service life. Fixed assets include buildings, buildings, machinery and equipment, means of transportation, electronic equipment, office equipment, etc. These assets play an important role in the production and operation process of the enterprise, such as houses and buildings to provide production and operation sites for enterprises, machinery and equipment for the production of goods or provide services, and transportation tools for the transportation of goods.
2.Construction in progress
Construction in progress refers to the projects that are in progress by the enterprise and have not yet reached the intended usable state. The projects under construction include construction and installation works, equipment installation works, etc. The projects under construction are an important means for enterprises to expand their production scale and improve production efficiency, and they will bring more economic benefits to enterprises in the future.
3.Intangible assets
Intangible assets are identifiable non-monetary assets owned or controlled by an enterprise that do not have a physical form. Intangible assets include patent rights, trademark rights, copyrights, land use rights, non-patented technologies, franchise rights, etc. These assets play an important role in the development and innovation process of enterprises, such as patent rights can protect the technological innovation of enterprises, trademark rights can enhance the brand value of enterprises, and land use rights can provide production sites for enterprises.
4.Long-term investment
Long-term investment refers to the equity investment and debt investment made by an enterprise in other enterprises and is expected to be held for more than one year. Long-term investment includes foreign investment such as debt investment, other debt investment, long-term equity investment, and other equity instrument investment. Long-term investment can bring investment returns to enterprises, and it is also an important means for enterprises to expand market share and improve competitiveness.
5.Other non-current assets
Other non-current assets include long-term amortized expenses, deferred tax assets, long-term receivables, and available** financial assets. Long-term amortized expenses refer to expenses that have been paid by the enterprise but have not yet been recognized in the current profit or loss, such as advertising expenses, R&D expenses, etc. Deferred income tax assets refer to the income tax that enterprises do not need to pay due to the provisions of the tax law.
6.Investment real estate
Refers to real estate held by a business for rental income or capital appreciation. This type of asset is not usually used for the main business of the business, but it can bring stable cash flow to the business.
Non-current assets are the embodiment of long-term investment and long-term operation of enterprises, and they have an important impact on the development and profitability of enterprises. Enterprises should rationally allocate non-current assets to achieve sustainable development. In accounting, enterprises need to accurately measure and disclose non-current assets to reflect the financial status and operating results of the enterprise.
*From the Internet, invaded and deleted.