Greetings for the day to all the

students!
We hope you are doing fine and
keeping healthy.
In the previous lecture, we discussed
about Current Assets.
Today, we shall be discussing about
Non-Current Assets.
A Non-Current Asset is an asset that the
company acquires or invests, but the value of
that investment does not recur within an
accounting year. As per the Companies Act,
2013, the following two conditions must be
satisfied for an asset to be termed as a Non-
Current Asset :-
Must not be Must not be
realised within realised within
12 months of the the Operating
Balance Sheet Cycle of the
Company
 Fixed
Assets

Other Non- Non-

Current
Assets
Non- Current
Investments
Current
Assets

Long term
Deferred
Loans and
Tax Assets
Advances
Fixed Assets are those assets which are held by
the company not for the purpose of sale but for the
purpose to increase earnings of the business.
They are used for a long term to
earn profit. They are further
classified in the given way. Tangible
Assets

Intangible
Assets

Capital Intangible
Work-in- Assets under
Progress Development
Tangible Assets are those assets which
have physical existence, i.e., they can be
seen and touched. A Tangible Asset is an
asset that has a finite monetary value and a
physical form.
For example:- Land and Building, Machinery,
Furniture and Fixtures, etc.
Intangible Assets are those assets which do not
have physical existence and, thus, cannot be seen
and touched. Businesses can create or acquire
such assets. While an intangible asset doesn’t
have the obvious physical value, it can prove
valuable for a firm and be critical to its long term
success or failure.
For example :- Goodwill, Trademarks/Brands,
Copyrights, Mining Rights, Licenses, etc.
Intangible Assets under Development
means (fixed) intangible assets like patents,
intellectual property rights, etc., under
Development.
Investments are those assets that either
appreciates within a stipulated time or provide
monetary benefits or additional income after a
given period of time. These investments are not
held for a purpose of reselling but are meant to
be retained in the firm.
Non-Current Investments are of two types:-
1. Trade Investments- These are made by a
company in shares or Debentures.
2. Other Investments- These are the
investments other than Trade investments,
such as investments in Property.
Investments in Property

Investments in Equity Instruments

Investment in Government Securities

Investments in Debentures/ Bonds

Investments in Mutual Funds

Investment in Partnership Firms

A deferred tax occurs when a business has
a certain amount of income for an
accounting period and that amount is
different from the taxable amount on their
tax return. Deferred tax assets are often
created due to taxes paid or carried forward
but not yet recognized on the income
statement.
Long term Loans and Advances refer to that amount lent
by the company to third parties that will be recovered
after a period of 12 months or the Operating Cycle.
These loans are classified into the following types:-
1. Capital Advances
These are the advances given for acquiring fixed assets.
Normally, such advances are not received back in cash
but are received in the form of an asset.
2. Security deposits
Security Deposits that are given for a long period, i.e., for
a period of more than 12 months from the date of
Balance Sheet or after the period of Operating Cycle of
the business are classified as Long-term Advances.
For example:- Security Deposit for Electricity,
3. Other Loans and Advances (Nature to be
Specified)
Other Long term Loans and Advances are
shown according to its nature. E.g. :- Long-
term Loans given to employees and long term
loans to suppliers.
All other Non-Current Assets that do not fall
in any of the categories stated, are classified
as Other Non-Current Assets.

Long term Trade

Others
Receivables
This might include
This includes
assets such as
receivables that
unamortised
are to be received
expenses, prepaid
after an accounting
expenses, etc.
year.
With this, we end the topic of Balance Sheet of a company as
Financial Statements.
In the next lecture, we shall cover the topic of Statement of
Profit and Loss.
Thank you!