Characteristics of Long-Term Assets
Have a useful life of more than one year.
Are acquired for use in the business.
Are not intended for resale to customers.
Must be capable of repeated use for a period of at least one year.
Support the operating cycle instead of being part of it.
Are reported at carrying (book) value.
Carrying value is the unexpired part of the cost of an asset.
- Long-term assets are assets that: