Long-term investments represent non-current assets, whose full value won't be realized during the accounting year. Intangible assets, for example, or assets with no fixed expiration date, such as land or property, can also fall into this category.

Non-current assets are capitalized rather than expensed. Rather than accounting for the asset's cost for the year in which it was purchased, its cost is spread out over its perceived useful life. Depending on whether an asset is intangible or tangible, it would be amortized or depreciated.