What Is a Non Financial Asset?
A non-financial asset bases its value on its tangible characteristics and properties.
Non Financial Asset Examples
On a company’s balance sheet, several types of assets and liabilities will be listed.
Financial vs Non Financial Assets
Financial assets can include elements such as cash, stocks, and bonds. These are simpler to attribute value to and are considered more liquid.
Non financial examples may include land, buildings, and equipment, as well as patents and other intellectual properties.
Why Are Non-Financial Assets Important?
Though financial assets pay the bills, non-financial assets are important in evaluating the long-term viability of a company. Non financial resources are an important part of a company's market value, especially since they influence its ability to take on debt by providing collateral.