Long-term assets, sometimes called long-term investments, are assets that you plan to hold for a year or more.
Long-term assets are generally broken down into 4 categories:
- Securities – include stocks, bonds, and long-term notes receivable.
- Fixed Assets Not Currently Used in Operations – such as land acquired but not being used.
- Special Funds – pension funds, funds for future expansion, and the cash surrender value of life insurance.
- Nonconsolidated Subsidiaries and Affiliated Companies - accounting rules say that closely related companies must consolidate their financial statements into one set of statements. This category of long-term assets is for affiliate and subsidiary companies that are not considered closely held.