Intangible Assets Definition

Intangible Assets are assets that have no physical nature or presence.

Intangible Assets are non physical assets i.e. they cannot be touched. They are a component of a companys Non Current Assets and can be found on the balance sheet. Intangible Assets are of long term financial value to a company, some example of Intangible Asssets include:
Patents
Brand Recognition
Goodwill
Copyrights
Customer Lists

Of Intangible Assets there are two different types which are:
Definite Intangible Assets
Indefinite Intangible Assets

Although a balance sheet item, it is not always required for a company to have its Intangible Assets recorded, the exception is where the company has internally created an intengible asset which has no recorded book value. Where a company may be aqcuiring another it may sometimes be noticed the price is above the book value to cover for any premium paid on those internally created. However where an Intangible Asset has been aqcuired by another company or business we would then expect to see this reported on the balance sheet.

Intangible Assets act in opposite of Tangible Assets and whilst they do not benefit from any real physical form, they can play a crucial part in the driving success for a company.

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