Non-current assets of an enterprise are a combination of fundamental property values of a company that participate multiple times in the production and economic activities of a company in order to bring a positive financial result (profit).
Non-current assets: composition
An enterprise may include the following types of non-current assets: equipment intended for installation, intangible assets, fixed capital, unfinished capital assets, long-term financial investments, etc.
A variety of elements and forms of non-current assets for the purpose of purposeful management requires their preliminary classification, which allows you to put in order the system under study, structure it, make work with non-current assets more transparent and manageable.
In modern practice, accounting and management by functional types distinguish the following non-current assets. These are intangible assets, fixed assets and other types. The former represent the aggregate of the organization’s tangible assets in the form of means of labor, participating multiple times in the production process and transferring in parts their value to manufactured goods.
Intangible assets do not have a tangible form. They allow you to carry out the main types of business activities of the company.
Intangible assets also include incomplete investments, which characterize the entire amount of actual expenses incurred for installation and construction of individual objects related to future fixed assets. Unfinished construction works from the beginning of this process until its completion, then the object is classified as fixed assets.
Non-current assets are also equipment intended for installation. This includes equipment that is intended for installation and construction using assembly or installation. It attaches to supports or foundations. This group also includes instrumentation and other equipment that is mounted as part of the equipment.
Long-term financial investments include all financial instruments acquired by the organization, regardless of the size of the investment, the investment term of which lasts more than one year.
The nature of the service of some types of activities of the company determine the following non-current assets. These are funds for servicing operational activities. They primarily characterize the long-term assets of the company, such as intangible assets and fixed capital, which are used directly in the process of commercial and industrial activities.
This group includes non-current assets that are designed to service investment activities and characterize long-term assets formed during the investment, non-production non-current assets that represent social and domestic purposes, designed to meet the social needs of personnel (kindergartens, health centers, sports facilities, canteens, etc.)
The nature of ownership is divided into the following non-current assets. These are the company's own long-term funds, which are owned and owned by the company. They are reflected in the balance sheet of the enterprise. The same group also includes leased assets, which are used on the basis of the rights to use the company in accordance with leasing (rental) agreements concluded with their owners.
Unlike current assets, non-current assets have less liquidity, making them harder to sell and get money for them.