Other assets definition

What are Other Assets?

Other assets is a grouping of accounts that is listed as a separate line item in the assets section of the balance sheet. This line item contains minor assets that do not naturally fit into any of the main asset categories, such as current assets or fixed assets.

Examples of Other Assets

There are several types of assets that can be included in the Other Assets classification. Here are some examples:

  • Advances to employees. An employer might advance funds to an employee for which repayment will not be for more than one year. These advances can be classified as Other Assets.

  • Bond issuance costs. Bond issuance costs are the fees associated with the issuance of bonds by the issuer, and may linger on the balance sheet for years, as they are gradually amortized.

  • Deferred tax assets. These are income taxes that are recoverable in a future period.

  • Deposits. Security deposits paid on leases may quite easily not be returned for an extended period of time, in which case they are classified as Other Assets.

  • Long-term prepaid expenses. Some prepaid expenses are paid so far in advance that they will not be consumed for more than a year. These long-term assets can be classified as Other Assets.

  • Non-current receivables. If a seller has issued billings to customers with payment terms that are still more than one year in the future, then they are classified as Other Assets.

Related AccountingTools Courses

The Balance Sheet

The Interpretation of Financial Statements

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