Is a Patent a Noncurrent Asset?

Written by True Tamplin, BSc, CEPF®

Updated on January 02, 2023

Yes, a patent is a noncurrent asset. A noncurrent asset is any asset that will provide an economic benefit after or for longer than one year. Patents are expected to have a useful life longer than one year, so they are a noncurrent asset. Specifically they are an intangible asset, meaning that they are not attached to any physical entity. Intangible assets are almost always considered noncurrent assets.

Is a Patent a Noncurrent Asset FAQs

Is a patent a noncurrent asset?

Yes, a patent is a noncurrent asset.

What is a noncurrent asset?

A noncurrent asset is any asset that will provide an economic benefit after or for longer than one year.

Why are patents considered noncurrent assets?

Patents are expected to have a useful life longer than one year, so they are a noncurrent asset.

Is a patent an intangible asset?

Patents are an intangible asset, meaning that they are not attached to any physical entity. Intangible assets are almost always considered noncurrent assets.

About the Author

True Tamplin, BSc, CEPF®

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.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.