intangible asset

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Intangible asset

A legal claim to some future benefit, typically a claim to future cash. Goodwill, intellectual property, patents, copyrights, and trademarks are examples of intangible assets.

Intangible Asset

In accounting, any asset that cannot be seen or touched. Intangible assets include things like patents and brand recognition, which add value to a company, but are difficult to price. Intangible assets explicitly do not include actual things, such as widgets, a widget factory, or the land upon which the widget factory is built. Because of the difficulty in pricing, intangible assets are sometimes not included in a company's valuation. However, not including them may not express the company's true value. See also: Tangible assets.

intangible asset

An asset such as a patent, goodwill, or a mining claim that has no physical properties. Since intangible assets are often difficult to value accurately, such assets when included on a corporate balance sheet may have a true value significantly different from the dollar amounts indicated there. Compare tangible asset.
References in periodicals archive ?
Evaluating intangible assets is not an easy exercise, compared to tangible assets (e.
Capitalization of internally generated intangible assets can only occur after all of the following conditions have been met:
Taking into account the growing trends of increasing mergers and acquisitions, joint ventures, compliance, control and transparency, greater attention should be placed on valuing intangible assets, which contribute significantly towards a company's net worth.
Establishing specific guidance for the amortization of intangible assets.
The intangible assets acquired from Seller I were divided into four categories: (1) trademarks and trade names, (2) designs and drawings, (3) software and (4) trade secrets and know how.
Because they are not physical, identifying intangible assets presents another challenge.
Whatever the cause, it's often necessary to determine how much of the original intangible asset was related to the particular part of the divested business.