Long-term assets definition
/What are Long-Term Assets?
Long-term assets are assets that are not expected to be consumed or converted into cash within one year. These assets are typically recorded at their purchase costs, which are subsequently adjusted downward by depreciation, amortization, and impairment charges. Thus, unless these assets are replaced, the amount reported by a business tends to decline over time.
Examples of Long-Term Assets
Common examples of long-term assets are fixed assets, intangible assets, and long-term investments.
Presentation of Long-Term Assets
Long-term assets are reported on an organization’s balance sheet, after its current assets. All assets not classified as long-term assets are classified as current assets. Current assets are expected to be consumed or converted into cash within one year.