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Hello sir,
thank you for your great lectures. The intent to keep the non-current assets for more than one year starts to count from the date the non-current asset is bought or to be held at least until the end of the next accounting period? e.g. an asset bought at 15/06/2019 (31/12/2019 year-end) is being considered as a non-current asset if we intend to keep it more than the 15/06/2020 or more than the 31/12/2020? I am not referring to the nature of an asset in order to sort it into an account e.g. a truck is, of course, a non-current asset but if want to figure it out from the intent we have. Thank you very much.The date is not as precise as it is for non-current liabilities, and to be honest is irrelevant.
All that matters is whether it is intended to be kept and used within the business, and is obvious for cars, plant and equipment, etc.. All the non-current assets I describe within my lectures will always be classed as non-current assets. The only except would be if they were a company dealing in (for example) cars. In that case they would obviously not be intending to keep the assets and they would be classed as inventory instead.
Again, the date is not precise. Just suppose the business bought a machine that they were intending to keep, but decided after (say) 9 months that another machine would be better and so they sold the first one and bought the second. Even though the first machine was not kept for a year, when they originally bought it they were intending to keep it and so it would still have been classed as a non-current asset,
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