To define the term \u2018non-current assets\u2019 requires that we address the concept of liquidity. An asset is liquid if it can be realized within a short period of time and with ease without losing any of its value (normally assumed within a year). Liquid assets comprise your company\u2019s \u2018current assets\u2019. However if an asset is not as liquid due to its nature and its use for your company, it\u2019s treated as a \u2018non-current asset\u2019 on your company\u2019s balance sheet.\u00a0<\/p>\n
Non-current assets (usually property, plant and equipment, software (that is intangible assets)) are those that you\u2019d use for a longer period than just a year and more so, they\u2019re normally considered not that easy to be realised. As it is, with such assets there are different treatments than you\u2019d have for current assets (also for current assets which in part are realized after a year and are thus also recognized under non-current assets). Assets like property, plant and equipment aren\u2019t your usual collectable receivables or prepaid balances to be realized in as expenses or inventories. I guess the biggest addition to accounting treatments when it comes to property, plant and equipment is the fact that they\u2019re being depreciated into expenses. As with every assets, they\u2019re obviously written down in value should the situation require, they can be sold and scrapped (similar to inventories no longer in use) and so on.<\/p>\n
And remember that it\u2019s actually best to have some assets recognized as your property, plant and equipment as opposed to just shoving them into expenses in order not to stress you with the treatment of one.<\/p>\n","protected":false},"excerpt":{"rendered":"
To define the term \u2018non-current assets\u2019 requires that we address the concept of liquidity. An asset is liquid if it can be realized within a short period of time and with ease without losing any of its value (normally assumed within a year). Liquid assets comprise your company\u2019s \u2018current assets\u2019. However if an asset is […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[74],"tags":[],"class_list":["post-5321","post","type-post","status-publish","format-standard","hentry","category-2-7-accounting-in-itself"],"aioseo_notices":[],"_links":{"self":[{"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/5321","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/comments?post=5321"}],"version-history":[{"count":1,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/5321\/revisions"}],"predecessor-version":[{"id":5322,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/5321\/revisions\/5322"}],"wp:attachment":[{"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/media?parent=5321"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/categories?post=5321"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/tags?post=5321"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}