{"id":6091,"date":"2021-10-25T00:37:27","date_gmt":"2021-10-24T23:37:27","guid":{"rendered":"https:\/\/www.simtrade.fr\/blog_simtrade\/?p=6091"},"modified":"2021-10-25T00:37:27","modified_gmt":"2021-10-24T23:37:27","slug":"long-term-securities","status":"publish","type":"post","link":"https:\/\/www.simtrade.fr\/blog_simtrade\/long-term-securities\/","title":{"rendered":"Long-term securities"},"content":{"rendered":"

Long term securities<\/h1>\n

\"Shruti<\/a><\/p>\n

In this article,\u00a0Shruti CHAND<\/a>\u00a0(ESSEC Business School, Grande Ecole<\/i> Program – Master in Management, 2020-2022) elaborates on the concept of\u00a0long-term securities.<\/i><\/p>\n

This read will help you get started with understanding\u00a0long-term securities.<\/p>\n

Introduction<\/h2>\n

Long-term assets on a balance sheet represent all the assets of a business that are not expected to turn into cash within one year. They are represented as the non-current part of the balance sheet. These are a set of assets that the company keeps for a long-term and is not likely to be sold in the coming years, in some cases, may never be sold.<\/p>\n

Long-term assets can be expensive and require huge capital which might result in draining cash reserves or increasing debt for the firm.<\/p>\n

The following category of long-term assets can be found in the balance sheet:<\/p>\n

Investments<\/h2>\n

These are all the long-term investments by a company in securities, real estate and other asset classes. Even the bonds and other assets restricted for long-term value are treated as investments by the company.<\/p>\n

Property, plant and equipment<\/h2>\n

Property that the company owns associated with the manufacturing process or other business operations. An important aspect about this asset class is the depreciation associated with the value of the asset over time.<\/p>\n

Typically, you can find the following items disclosed as property, plant and equipment on the balance sheet:<\/p>\n