Long-term assets are a balance sheet item that represents the value of all property that is expected to be in use for more than one year, as well as all long-term investments.
Long-term investments include stocks, bonds, other securities and even long-term loans that a person or a company gives to another person or company.
Other long-term property can be divided two categories: fixed assets and intangible assets.
Fixed assets are buildings, plants, machinery, equipment and other capital assets. They are not intended for sale, but they are instrumental in generating revenue through their use in production and providing services. Since fixed assets are gradually being destroyed through use, they undergo depreciation, a reduction in bookkeeping value. The depreciation is performed gradually, in discrete intervals, through a prescribed amount of time. This doesn’t mean that their actual value is zero and that they can’t be sold or that they become unusable once that period ends, but it’s a way for the assets to pay for themselves.
Intangible assets are things of value (property) that cannot be seen, touched or felt. They include patents, rights, trademarks, brand names and economic goodwill. Their value is difficult to assess due to their subjective nature.