Intangible Assets and its Types

An intangible asset is a useful resource without any physical presence. The assets such as
trademarks, copyrights, patents, goodwill etc are intangible assets. You can now understand that
such assets produce economic benefits but you can’t touch them like other assets such as PPE.

Meaning of Intangible Assets

An intangible asset is an asset that does not have any physical existence. Like tangible assets, you
cannot touch or feel them but they have a current and future value. They are long-term assets of a
company having a useful life greater than one year. A business can either develop these assets
internally or can acquire them in a business combination.

Types of Intangible Assets

Following are the common types of Intangible assets:

Goodwill

It is a type of intangible asset that is recognized when one business acquires another business.
Goodwill equals the cost of purchase of the business by the purchasing company minus the value of
net assets of the purchased company. It represents the business reputation of a company.

A patent is a type of intangible asset that grants a business the exclusive right to manufacture, sell or
use a specific invention. A company can purchase the patent from another company or it can invent
a new product and receive a patent for it.

Trademarks

A trademark is an intangible asset which legally prevents others from using a business’s name, logo
or other branding items. It is a design, symbol or a logo used in connection with a particular product
or a business.
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Intangible Assets and its Types

An intangible asset is a beneficial resource without any substantial presence. Property such as
trademarks, copyrights, patents, etc. they are insensible assets. Now, we do not have to touch them
like other properties, like the PPE.

Meaning of Intangible Assets

An intangible asset is an asset that does not have any actual presence. Like tangible assets, you
cannot touch them but they have a present, and future worth. They are long-range assets of a
company having a life greater than one year. A work can either improve these assets internally or
can gain them in a business set.

Types of Intangible Assets

Following are the popular types of Intangible assets:

Goodwill

It is a type of intangible asset that is known when one business gain another business. Goodwill
equals the cost of buy of the business by the purchasing firm minus the value of total assets of the
purchased company. It symbolizes the business credit of an association.

A patent is a type of intangible asset that awards a commerce the limited right to production, use or
sell a particular concoction. A company can buy the patent from another company or it can fabricate
a new product and extradite a patent for it.

Trademarks

A trademark is an intangible asset which lawfully stops others from utilizing a trade’s name, badge or
other tag items. It is a design, sign or a badge used in linking with a special product or a work.
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Intangible Assets and its Types

An insensible asset is a profitable resource without any actual presence. Characteristic such as
trademarks, copyrights, goodwill, etc. they are unrealizable assets. Now, we do not have to handle
them like other characteristics, like the PPE.

Meaning of Intangible Assets

An intangible asset is an asset that does not have any real existence. Like tangible assets, you cannot
handle them but they have an immediate, and outlook worth. They are long-dated assets of a
corporation having a life greater than one year. A work can either improve these assets internally or
can upgrade them in a work set.

Types of Intangible Assets

Below are the widespread types of Intangible assets:

Goodwill

It is a type of intangible asset that is known when one trade get another trade. Goodwill equals the
price of buying of the business by the purchasing corporation minus the value of pure assets of the
purchased company. It performs the trade name of a company.

A patent is a type of intangible asset that gives a business the limited right to make, market or use an
appointed innovation. An association can buy the patent from other firm or it can concoct a new
output and receive a patent for it.

Trademarks

A trademark is an intangible asset which rightful blocks others from utilizing a business’s name,
signpost or other labelling materials. It is a planning, icon or a logo used in relation with a specific
output or a business.