How to Calculate Non-current Assets?

Non-current assets can be calculated by the following formula:

Non-current Assets = Total Assets – Current Assets

Or

Non-current Assets = Fixed Assets (Tangible + Intangible) + Non-current Investments + Long-term Loans and Advances

Example:

From the information given of the company XYZ Ltd. for the year ending 31^st March 2023, Calculate Non-Current Assets.

Additional Information:

• Depreciation to be charged on property, Plant, and equipment is 15%
• Depreciation to be charged on Intangible Assets is 10%
• Long-term assets have been appreciated by ₹65,000.
• Goodwill remains unchanged.

Solution:

In the Books of XYZ Ltd. for the year ending 31^st March 2023

So to calculate Non-Current Assets entity may follow a series of steps:

• Determine all the Assets that are owned by the Entity during any Accounting Year.
• Separate all the Assets based on their characteristics and Relevant Holding Period between Current Assets and Non-Current Assets.
• Determine their Individual Carrying Amount for the Respective Accounting Year
• Adjust their carrying value by applying the applicable rate of Depreciation and Any Revaluation (if any).