What Are Intangible Assets?

Patrick Curtis

Reviewed by

Patrick Curtis WSO Editorial Board

Expertise: Investment Banking | Private Equity

Intangible Assets are those assets held by a company that are not physical (an example of a physical asset would be a factory, computers etc).

Despite not being physical and therefore not easily traded, Intangible Assets must be included when assessing the value of a company as they add value. For example, a lot of Apple's value comes from its patents and copyrights on products such as the iPhone and iPad so Apple would have a relatively large amount of Intangible Assets.

Intangible Assets usually have a certain expiry point (as opposed to Goodwill assets which are indefinite).

Some examples of Intangible Assets are:

  • Trademarks
  • Patents
  • Contracts

Intangible Assets are found on the Balance Sheet, whilst Amortization of Intangibles is found on the Income Statement and Cash Flow Statement.

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Patrick Curtis

Patrick Curtis is a member of WSO Editorial Board which helps ensure the accuracy of content across top articles on Wall Street Oasis. He has experience in investment banking at Rothschild and private equity at Tailwind Capital along with an MBA from the Wharton School of Business. He is also the founder and current CEO of Wall Street Oasis. This content was originally created by member WallStreetOasis.com and has evolved with the help of our mentors.