Intangible Assets

What are Intangible Assets?

Intangible assets are non-physical assets that a company owns, which provide economic benefits. Unlike tangible assets such as equipment or buildings, intangible assets are not physical in nature but can be equally valuable in terms of contribution to a company's market positioning and profitability. Examples of intangible assets include patents, trademarks, goodwill, and brand recognition.

Short Description: Non-physical assets that have value, such as intellectual property and brand recognition.

• Intellectual Property: Legal rights and advantages such as patents, copyrights, and trademarks.
• Goodwill: The value arising when a company acquires another for more than the fair value of its net assets.
• Brand Recognition: The value derived from consumer awareness and perception of the brand.
• Franchises: Agreements with third parties granting rights to operate under the company's name or business model.

Despite their non-physical nature, intangible assets can significantly impact a company's competitiveness and financial health. Properly valuing and managing intangible assets is crucial for strategic business planning and reporting.