Term · Balance Sheet & Debt
Non-current assets
In briefNon-current assets bundle the assets that serve a company over the long term, such as machinery, real estate or licences. For capital-intensive small caps they are often the largest balance-sheet item and a central starting point for impairment risks.
Definition
Assets that serve the business permanently, such as machinery, buildings or licences.
How it is calculated
Formula. Balance-sheet item — no separate calculation formula, the sum of long-term committed assets.
Why it matters for small caps
For capital-intensive small caps, for example in industry or mining, non-current assets are often the largest balance-sheet item and a central anchor point for impairment risks.
Common misreadings
- They are confused with current assets, although they are permanently committed and not liquidable at short notice.
In the process
Frequently asked
What are non-current assets?
They are the long-term committed assets of a company. These include, for example, property, plant and equipment and intangible assets such as licences.
Why do you look at non-current assets?
They show how much capital is permanently tied up in the business. For industry- or mining-related stocks, they often form the core of the balance sheet.
Why must non-current and current assets not be confused?
Non-current assets are permanently committed and not liquidable at short notice. Current assets, by contrast, are turned over in ongoing operations.
Related terms
Sources
Primary
IFRS Foundation – IAS 16 Property, Plant and Equipment
https://www.ifrs.org/issued-standards/list-of-standards/ias-16-property-plant-and-equipment/
https://www.ifrs.org/issued-standards/list-of-standards/ias-16-property-plant-and-equipment/
Methodology
IFRS Foundation – IAS 38 Intangible Assets
https://www.ifrs.org/issued-standards/list-of-standards/ias-38-intangible-assets/
https://www.ifrs.org/issued-standards/list-of-standards/ias-38-intangible-assets/
Education only, not investment advice. Ranges and thresholds are didactic orientation values, not an official standard.