Learn in the textbookClassification of Assets and Liabilities
DefinitionNon-current assets (固定資産) are the asset category for items outside the flow of core business transactions that are held for more than one year from the balance sheet date.
ExplanationNon-current assets that lose value as they are used, such as buildings and machinery, are not expensed all at once in the year of purchase; instead the cost is spread over each year of the expected period of use (the useful life, 耐用年数). This procedure is called depreciation (減価償却). Within non-current assets, items are shown separately, for example as tangible fixed assets (有形固定資産) with physical form and intangible fixed assets (無形固定資産) without it.
AnalogyLike a house or a car, property you keep for years rather than selling soon.
Memory hook“Fixed” (固定) means set in place and not moved.