What are intangible assets?

Intangible assets are the non -physical value that society owns. These assets do not have a specified monetary value and no physical measurement. They cannot be seen or touched, but they are important for the success of society.

There are two classifications of intangible assets: legal and competitive. Legal assets include things such as intellectual property and copyright. Competitive assets include know-how and reputation. These include copyright, patents, trademarks, brands and trade secrets. These assets are more definable than competitive. For example, Society A own rights to brand B. Brand brand B is something recognizable as something that can be owned, although the monetary valuation can be a much more difficult task.

Competitive intangible assets are a little more difficult to define. These assets are usually gained by experience. These are things like know-how, human capital, reputation, lever and cooperation. If the name is a difficult task, the appreciation is the science of the bestCH estimates. Certain assets are those that last for a period of time, such as contractual agreements. Unlimited assets continue after an unspecified amount of time as a brand that will continue as long as the company decides to produce the product.

As mentioned above, the valuation of intangible assets is extremely difficult. The award focuses on the future of the company and decides how the assets will affect in the coming years. The cost of assets is usually assigned during their useful life or legal conditions, depending on what is more important in the situation of a particular asset. This term is never more than forty years old. This assignment is called the amortization of intangible assets.

For example, Company A sells a patent of company B, which is 2 years old at the time of the transaction. The legal life of the patent is 17 years old, so there are 15 years of legal life left in the patent. Most patents are no longer usedAfter just 10 years, so society B could claim that the life of the patent is only 8 years old. If the original patent cost $ 50,000 in the US (USD), the accountant would divide this price of life to find out what the purchase would be. In this case, $ 50,000 is divided by 10 years, means that it is worth $ 5,000 per year or $ 40,000 at the time of purchase.