We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.
Finance

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

What are Non-Concurrent Assets?

By Danielle DeLee
Updated: Feb 26, 2024
Views: 11,758
Share

Non-concurrent assets are more frequently called non-current assets. They comprise a category of assets that is used in accounting. To fit into this category, an asset must not be expected to be sold within a year. There are, however, certain categories of assets commonly accepted in the accounting industry as non-current assets: long-term investment, property and intangible assets.

The definition of non-concurrent assets is negative: a non-concurrent asset is any asset that is not current. The currency of an asset refers to its convertibility into money, a quality that encompasses both the asset’s liquidity and the holder’s intent to sell it. Current assets are generally those that will be converted into cash within a year. The somewhat vague definition of the non-concurrent asset class has been clarified by practice. Three categories of assets are generally reported as non-concurrent assets.

One non-concurrent asset category is long-term investment. This includes both equity and debt instruments the company plans to hold long-term. Bonds that mature after the accounting year is finished are considered long-term assets. The category also includes stock in other companies. The lines for these assets on the balance sheet reflect their market value at the time of accounting; however, these values are prone to change, so the most recent balance sheet is not always an accurate reflection of a company’s current holdings.

Some types of property are also classified as non-concurrent assets. This category, commonly referred to as properties, plants and equipment or PP&E, consists of real estate, factories and machinery. These are assets companies usually hold for a long period or, in the case of equipment, until they need to be replaced. The purchase price of real estate is reported. The accounting of other PP&E assets takes depreciation into account, which means the accountant subtracts value for past use of the asset.

The third, and least well-defined, category of non-concurrent assets is intangible assets. These include the value of a brand name and customer loyalty. One commonly reported intangible asset is goodwill.

The line of the balance sheet that reports goodwill reconciles the cost of acquiring a company with its actual worth. When a buyer pays more for a company than it is worth on paper, accountants justify the purchase by strategically valuing intangible assets. Impairment occurs when the purchasing company revises the goodwill line so it is lower than in the previous year.

Share
WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.

Editors' Picks

Discussion Comments
Share
https://www.wise-geek.com/what-are-non-concurrent-assets.htm
Copy this link
WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.