What is the definition of non-current assets?

The definition of non-current assets refers to items that a business owns and plans to keep for a long period, typically more than one year. These assets are essential for the ongoing operations of a business and include items such as property, machinery, vehicles, and equipment. They are not intended for immediate sale or conversion into cash; rather, they provide long-term benefits and contribute to the production of revenue over time.

In contrast to non-current assets, items that frequently change in value or are quickly convertible to cash do not fall under this definition. Non-current assets are characterized by their stability and their role in a business's long-term investment strategy, which distinguishes them from current assets, such as inventory and receivables, that are expected to be converted to cash within a year.