Intangibles

Examples of Intangibles in the following topics:

• Analyzing Intangible Assets

  • Intangible assets are defined as identifiable non-monetary assets that cannot be seen, touched or physically measured.
  • Intangible assets are created through time and effort, and are identifiable as a separate asset .
  • Intangible assets are typically expensed according to their respective life expectancy.
  • Intangible assets have either an identifiable or indefinite useful life.
  • Intangible assets with indefinite useful lives are reassessed each year for impairment.

• Characteristics of Intangible Assets

  • Intangible assets are identifiable non-monetary assets that cannot be seen, touched, or physically measured.
  • Intangible assets have a useful life that is either identifiable or indefinite.
  • Intangible assets with indefinite useful lives are assessed each year for impairment.
  • Internally Created Intangibles, and Limited-Life vs.
  • Indefinite-Life Intangibles.

• Reporting Intangibles

  • Intangible assets are either recorded at cost or expensed as they are created.
  • Intangible assets lack physical existence.
  • Intangibles purchased from another party are recorded at cost .

• Intangibility

  • Intangibility is used in marketing to describe the inability to assess the value gained from engaging in an activity using any tangible evidence.

• Limited-Life Impairment

  • Intangible assets are non-monetary assets that cannot be seen, touched, or physically measured.
  • Intangible assets are created through time and effort, and are identifiable as separate assets.
  • Intangible assets are amortized to reflect their consumption, expiry, obsolescence or other decline in value as a result of use or the passage of time, process which is similar to the deprecation process for tangible assets.
  • Intangible assets can have either a limited or an indefinite useful life.
  • Intangible assets with a limited-life are amortized on a straight-line basis over their economic or legal life, based on whichever is shorter.

• Valuation of Intangible Assets

  • Intangible assets generally arise from two sources: (1) exclusive privileges granted by governmental authority or by legal contract, such as patents, copyrights, franchises, trademarks and trade names; and (2) superior entrepreneurial capacity or management know-how and customer loyalty , which is called goodwill.
  • Intangible assets are initially recorded on financial statements at their purchase price, or the cost of acquiring the asset.

• Amortization of Intangible Assets

  • Intangible assets have a useful life that is either identifiable or indefinite.
  • Intangible assets with identifiable useful lives are amortized on a straight-line basis over their economic or legal life, whichever is shorter.

• Indefinite-Life Impairment

  • Intangible assets with identifiable useful lives (limited-life) include copyrights and patents.
  • Intangibles can also be classified as: legal intangibles or competitive intangibles.

• Types of Long-Lived Assets

  • Intangible assets includes non-physical resources and rights that a firm deems useful in securing an advantage in the marketplace.

• Assets

  • Intangible assets are nonphysical resources and rights that have a value to the firm because they give the firm some kind of advantage in the market place.