posted on 09-05-2019

Non-Financial Asset

Updated September 5, 2019

What is a Non-Financial Asset?

A non-financial asset has a value based on its tangible characteristics and properties.

Non-Financial Asset Examples

A company's balance sheet includes several types of assets and liabilities. Assets include financial assets, such as cash, stocks, bonds and non-financial assets. Examples of non-financial assets include land, buildings, vehicles and equipment. Non-financial assets also include R&D, technologies, patents and other intellectual properties. 

Why Non-Financial Assets Are Important

While financial assets pay the bills, non-financial assets are important in evaluating the long term viability of a company. Non-financial assets are an important part of the company's ability to incur debt by providing collateral with sustainable market value.