An asset that is not a current asset; typically, it has a long-term life and nature which makes it able to produce its economic benefits over the span of more than an accounting period. Examples of noncurrent assets include investments in other businesses, intellectual property (e.g., patents), and property, plant and equipment (PPE). By nature, the full value of noncurrent assets cannot be realized in a normal operating cycle. These assets are also not primarily held for the purpose of trading.
Given this specific nature, cash and cash equivalent assets cannot be classified as noncurrent assets, unless their use is restricted: they cannot be exchanged or used to settle a liability for 12 months or more after the reporting period.
Noncurrent assets are also known as long-term assets.
