Page 99 - F3 -FA Integrated Workbook STUDENT 2018-19

Non-current assets: acquisition and depreciation

Non-current assets

1.1 Introduction

Non-current assets are distinguished from current assets because they:

 are a resource acquired by an entity with the intention of using them to earn
revenue for more than one accounting period

 are not normally acquired for resale

 can be either tangible or intangible

 are used to generate income directly or indirectly for a business entity

 are not normally liquid assets (i.e. not easily and quickly converted into cash
without a significant risk of loss in value).

Examples of intangible non-current assets include goodwill,
development costs, licences and patents.

Examples of tangible non-current assets include land, buildings, motor
vehicles, machinery and equipment.

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