Because market value of real estate is determined by intangible rights and the market's desire for those rights, tangible real estate, void of rights, has no market value.
When the intangible rights of use and occupancy are temporarily given to another via lease, the compensation for borrowing those rights is contract rent (all contract rent whether above, below, or at market rent).
All countries, but especially OECD countries, deal with the issue of the development and growth of firms' capital, especially of the part of the capital that can grow continuously and consistently, exceeding the amount of equipment, called intangible capital or intellectual capital.
Currently, to underscore the importance of intangible assets, there are pursuing projects which seek to improve the valuation of intangible assets, both at macroeconomic and at microeconomic level, analyzing their contribution to the economic growth and their relationship with new business models.
To this extent, the definitions of intangibles--both for separately identifiable intangibles and accounting goodwill--have stabilized in the past decade.
ASC 805-20-55-13 gives a non-exhaustive list of examples of intangibles often encountered in business combinations (reproduced in the Exhibit).
In order to adequately manage intangibles it is necessary to get information relating to them.
The motives that drive companies to value their intangibles can be internal--related to generating information for managers- or external--related to the report on intangibles to external stakeholders.
Thus, intangible assets should be classified as capital; and spending on intangibles should be counted as investment rather than operational or intermediate expenses.
2009) indicate that in the United States, if investment in intangibles is not included, GDP growth is underestimated by about 0.
However, if the LLC could establish that rather than being a single intangible
asset, the self-created customer-based intangibles
were separate from the acquired customer-based intangibles
, ordinary income recapture on the sale would be limited to gain on the acquired intangibles
A Company's Internal Audit and Search for Intangibles