Intangible Assets

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.

Free Resources

To continue learning and advancing your career, check out these additional helpful WSO resources:

• Retained Earnings
• Fraud Triangle
• Accounts Receivable Turnover Ratio
• Marginal Cost Formula
• Nash Equilibrium