Yes, buildings are noncurrent assets. A noncurrent asset is any asset that will provide an economic benefit after or for longer than one year. Buildings have a useful life of much longer than a year, making them noncurrent assets. Specifically, they are a part of PP&E, or property, plants, and equipment, which is a category of fixed-assets.
Are Buildings Noncurrent Assets FAQs
What is a current asset?
A current asset is an asset that will provide economic value within 1 year, whereas a fixed asset is a long-term asset that will provide economic value beyond 1 year.
Are buildings current assets?
Buildings are not current assets since they are expected to provide economic value beyond 1 year.
What type of asset are buildings?
Specifically, they are a part of PP&E, or property, plants, and equipment, which is a category of fixed-assets.
What is the difference between a current asset and a fixed asset?
Fixed assets have a much longer lifespan than current assets, which are only ever short-term.
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.