Balance sheet - assets
Intangible Assets
Records non-physical assets such as software, brands, patents or customer relationships on the balance sheet. An asset is not automatically cash or market value: it is a controlled resource whose quality depends on liquidity, recoverability, turnover, impairme
Intangible Assets
intangibleAssets · Balance sheet - assets
- Definition
- Records non-physical assets such as software, brands, patents or customer relationships on the balance sheet. An asset is not automatically cash or market value: it is a controlled resource whose quality depends on liquidity, recoverability, turnover, impairments and usefulness for generating future sales.
- Calculation
- Cost of recognized intangibles - accumulated amortization - impairments.
- Uses
- Useful for assessing liquidity, capital intensity and balance-sheet quality. Especially important in retail, industrials, banks, insurers, REITs and asset-heavy models; it can understate internally built software, brands or networks. Cross-check turnover, impairments, age, ROA, ROIC and cash flow.
