Non-current assets

To our discussion on non current assets, a key component in understanding the long term financial health of any business. Non current assets, also called fixed assets in the UK, are resources a company expects to use for more than one year. Unlike current assets like cash or inventory, they are not for quick conversion into cash. Instead, they provide ongoing value and support operational capacity. Examples include land, buildings, machinery, vehicles, and intangible assets such as patents or brand names. These assets shape a company's ability to generate future revenue and feature prominently on the balance sheet. Non current assets are broadly categorized as tangible and intangible. Tangible assets are physical items like property, plant, and equipment, including land, buildings, vehicles, and machinery, which are essential for long term operations. Intangible assets lack physical substance and include items such as brand names, patents, software, and goodwill. Examples of intangible assets include a taxi license or an acquired brand. Both types appear on the balance sheet, but their recognition and measurement may differ, and internally developed intangibles are rarely capitalized due to measurement challenges. Most non current assets, except land, gradually lose value as they are used in business. The systematic allocation of this value loss is called depreciation for tangible assets and amortization for intangibles.