Question

when an asset shall be classified as non current?​

Answer 1

Answer:

Noncurrent assets are a company's long-term investments that are not easily converted to cash or are not expected to become cash within an accounting year.

Also known as long-term assets, their costs are allocated over the number of years the asset is used and appear on a company’s balance sheet.

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Answer 2

Investments are classified as noncurrent only if they are not expected to turn into unrestricted cash within the next 12 months of the balance sheet date.

Explanation:

Noncurrent assets are usually classified under one of the following labels—property, plant, and equipment (PP&E); investments; intangible assets; or other assets. Investment is classified as a noncurrent asset only if they cannot be converted into unrestricted cash within the next 12 months. are usually classified under one of the following labels—property, plant, and equipment (PP&E); investments; intangible assets; or other assets. Investment is classified as a noncurrent asset only if they cannot be converted into unrestricted cash within the next 12 months.