noncurrent asset


Also found in: Dictionary, Legal.
Related to noncurrent asset: current assets

Noncurrent asset

Any asset that is expected to be held for the whole year, not sold or exchanged, such as real estate, machinery, or a patent.

Fixed Asset

An asset with a long-term useful life that a company uses to make its products or provide its services. Strictly speaking, a fixed asset is any asset that the company does not expect to sell for at least a year, but the term often refers to assets a company expects to have indefinitely. Common examples of fixed assets are real estate and factories, which a company holds for long periods of time.

noncurrent asset

An asset that is not expected to be turned into cash within one year during the normal course of business. Noncurrent assets include buildings, land, equipment, and other assets held for relatively long periods. Noncurrent assets are generally more profitable than current assets, but they also entail more risk because they are more difficult to turn into cash and are likely to fluctuate in value more than current assets.
References in periodicals archive ?
Each company purchased all of its noncurrent assets in the month the company was formed.
c)(i) Recommend, based on net present value, whether or not KL should replace its noncurrent assets.
Most noncurrent assets of most clients will fall in this category; and, the measurement principles applicable to this category are more difficult to apply.
Practitioner Note: Entities are not required to routinely perform cash flow analyses on all of their noncurrent assets in attempts to determine if the assets should be considered for impairment; only if one or more of the impairment factors defined in SFAS No.
121 is written in away to indicate that noncurrent assets should be considered for impairment at the individual asset level, as a practical matter it seldom will be possible to estimate cash flows resulting from the use of a single asset since most entities do not track cash flows to that level of detail.
The noncurrent assets that are considered for impairment under SFAS No.
If the book value of the noncurrent assets associated with the store exceeds $3,240,000, the noncurrent assets will be considered impaired.
If it were determined that the noncurrent assets of Real Company were impaired, a logical approach to determining the fair value of these assets would be the determination of the present value of these cash flows.
Practitioner Note: Most impairment losses related to noncurrent assets will not be deductible for tax purposes at the same time the impairment losses are recognized for.