bilal1558
NON-CURRENT ASSETS
Non-current assets are long term investment which are expected to generate economic benefits over more than 12 month by the company. In other words, cash is not be realized within the accounting period. Non-current and current assets are classify separately into different heading of balance sheet. Depending upon the type of assets it may be depreciated or amortized over their useful lives.
Current Assets value can be realized within the accounting year that is it can be easily converted into cash within one year of operating cycle of the business.
Non-Current Assets are segregate in different types they are as follows:
- Intangible Assets (Fixed Assets)
- Property , plant and equipment (Fixed Assets)
- Long- term Investment
- Long – term notes receivable
- long –term deposit /advances,etc
Intangible Assets
Intangible assets such as patents, copyright, trademark (brand name), goodwill etc. are fixed assets which cannot be touch, feel and seen without physical existence.
Intangible assets are identify at fair value when they acquired and amortized over their useful lives except goodwill which has infinity life and they are annually tested for impairment.
Property plant and Equipment
Property, plant and Equipment (PPE) are physical and tangible fixed assets which has life of more than one year. They are classified in to different sub headings such as Land and Building, Vehicles etc.
NON-CURRENT ASSETS
Non-current assets are long term investment which are expected to generate economic benefits over more than 12 month by the company. In other words, cash is not be realized within the accounting period. Non-current and current assets are classify separately into different heading of balance sheet. Depending upon the type of assets it may be depreciated or amortized over their useful lives.
Current Assets value can be realized within the accounting year that is it can be easily converted into cash within one year of operating cycle of the business.
Non-Current Assets are segregate in different types they are as follows:
- Intangible Assets (Fixed Assets)
- Property , plant and equipment (Fixed Assets)
- Long- term Investment
- Long – term notes receivable
- long –term deposit /advances,etc
Intangible Assets
Intangible assets such as patents, copyright, trademark (brand name), goodwill etc. are fixed assets which cannot be touch, feel and seen without physical existence.
Intangible assets are identify at fair value when they acquired and amortized over their useful lives except goodwill which has infinity life and they are annually tested for impairment.
Property plant and Equipment
Property, plant and Equipment (PPE) are physical and tangible fixed assets which has life of more than one year. They are classified in to different sub headings such as Land and Building, Vehicles etc.