Non-current assets
In one sentenceAssets the business holds for more than a year to use in its operations rather than to sell, such as buildings, equipment, vehicles and software.
Simply put
These are the assets the business “works with”: the building, equipment and vehicles, along with intangible assets such as licensed software.
They are recorded at cost, then part of the cost is allocated to each year: depreciation for tangible assets and amortization for intangible ones, and they appear in the statements at their book value.
Worked example
A small plastics factory at year-end (at book value).
Equipment and production lines300,000 SAR
Distribution vehicles120,000 SAR
Licensed management software30,000 SAR
Total non-current assets (300,000 + 120,000 + 30,000)450,000 SAR
Don't confuse it with
Current assetsThey turn into cash within a year, such as inventory and accounts receivable.
in FullScreen ERP
The asset register in the system keeps a card for each asset with its category, location, custodian, purchase date and cost. Fixed assets