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
