What are intangible assets?
Long-lived assets with no physical substancethat are used in the business such as acquired goodwill, licenses, patents and franchises.
Intangible assets are assets that lack physical substance and cannot be touched or felt. They are identifiable non-monetary assets that are used to generate future economic benefits for the entity that owns them. Examples of intangible assets include patents, copyrights, trademarks, brand name, goodwill, customer lists, and software. These assets are usually long-lived and do not have a physical presence, but they play an important role in generating revenue for the business. Intangible assets are recorded on the balance sheet of a company and can be valued and amortized over their useful life. Compared to tangible assets, which have a physical form, intangible assets are harder to value and can be subject to significant fluctuations in their fair value. The proper identification and management of intangible assets are critical for companies in a knowledge-based economy, as they can significantly contribute to the overall value and competitiveness of the organization.
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