One of the main components of a balance sheet will be the non-current assets. Non-current assets are assets which are not expected to be converted into cash or used up within the next year. I have highlighted the non-current assets portion with a blue rectangular box in M1's balance sheet.
Fixed Assets - This represents the M1's infrastructure that can includes land, buildings, factories, furniture, equipment and so on. Fixed assets can also be seen in other financial statements as Property, Plant and Equipment or PP&E in short. If you refer to section 10 of the notes to the financial statements, you can see that M1's fixed assets consist of leasehold buildings, networks and related application systems, application systems and computers, motor vehicles and so on.
License and Spectrum Rights - This represents the rights and licenses that M1 has acquired to carry out its operations. For M1's case, this could refer to the rights and licenses to deploy broadband and telecommunication services. License and Spectrum rights can be grouped under intangible assets, which are more commonly seen in financial statements. Intangible assets stands for assets that are not physical in nature. If you refer to section 11 of the notes to the financial statements, you can see a detailed explanation of this component.
Staff Loans - This component is rather self-explanatory. It stands for the loans that M1 has made to its staff. If you refer to section 12 of the notes to the financial statements, you can see that the loans are related to the purchase of motor vehicles for its staff.
Interest in subsidiaries - This refers to M1's interest in her subsidiaries. Subsidiaries are businesses or companies that are owned by M1. If you refer to section 12 of the notes to the financial statements, you can find out more details about M1's subsidiaries.
In general, these are the main items of the non-current assets in a balance sheet. There can be other components depending on the nature of the industry which the company is in. In my next post, I will be discussing on the main items of the current liabilities in a balance sheet using M1 as an example.
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