Yes, a patent is a noncurrent asset. A noncurrent asset is any asset that will provide an economic benefit after or for longer than one year. Patents are expected to have a useful life longer than one year, so they are noncurrent assets. Specifically, they are intangible assets, meaning that they are not attached to any physical entity. Intangible assets are almost always considered noncurrent assets.
Is a Patent a Noncurrent Asset? FAQs
Yes, a patent is a noncurrent asset.
A noncurrent asset is any asset that will provide an economic benefit after or for longer than one year.
Patents are expected to have a useful life longer than one year, so they are noncurrent assets.
Patents are intangible assets, meaning that they are not attached to any physical entity. Intangible assets are almost always considered noncurrent assets.
A patent is an exclusive right granted for an invention, which may be a product or process that provides a new way of doing something, or offers a new technical solution to a problem.
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.
To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.
