What it is:
A non-financial asset has a value based on its tangible characteristics and properties.
How it works (Example):
A company's balance sheet includes several types of assets and liabilities. Assets include financial assets, such as cash, stocks, bonds and non-financial assets. Examples of non-financial assets include land, buildings, vehicles and equipment.
Non-financial assets also include R&D, technologies, patents and other intellectual properties. The following is an example balance sheet with assets listed first, and liabilities listed second.
|Stocks and Bonds||$200,000|
|Total Current Assets||$750,000|
Long Term Assets
|Total Long Term Assets||$375,000|
|Total Current Liabilities||-$150,000|
|Total Long Term Liabilities||-$250,000|
|Net Owner's Equity||$725,000|