Types of Intangible Assets

An intangible asset is an asset that is not physical in nature. Goodwill, brand recognition, and intellectual property, such as patents, trademarks, and copyrights, are all intangible assets. Intangible assets exist in opposition to tangible assets, which include land, vehicles, equipment, and inventory.

An intangible asset is a non-physical asset having a useful life greater than one year. These assets are generally recognized as part of an acquisition, where the acquirer is allowed to assign some portion of the purchase price to acquired intangible assets.

Intangible assets include franchise rights, goodwill, noncompete agreements and patents, among others. One of the line entries on your balance, intangible assets are probably one of the hardest items to put an actual value to and are only recorded on the balance sheet if purchased and are ignored if internally generated.

Intangible assets can be bought and sold independently of the business itself. Goodwill, on the other hand, is more of a miscellaneous category for intangible assets that are harder to parse out individually or measured directly.

Mortgage servicing rights refer to a contractual agreement where the rights to service an existing mortgage are sold by the original lender. Mortgage servicing rights refer to a contractual agreement where the rights to service an existing mortgage are sold by the original lender.

An intangible asset is an asset that is not physical in nature. Goodwill, brand recognition, and intellectual property, such as patents, trademarks, and copyrights, are all intangible assets. Intangible assets exist in opposition to tangible assets, which include land, vehicles, equipment, and inventory.

An intangible asset is an asset that is not physical in nature. Goodwill, brand recognition, and intellectual property, such as patents, trademarks, and copyrights, are all intangible assets. Intangible assets exist in opposition to tangible assets, which include land, vehicles, equipment, and inventory.

Start studying Intermediate Accounting Ch. 12 - Intangible Assets. Learn vocabulary, terms, and more with flashcards, games, and other study tools.

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