Intangible Assets
Accounting glossary · Understand, connect, apply
Intangible assets are identifiable nonmonetary assets without physical substance, such as certain patents, software or licenses. Recognition requires more than simply having business value.
Example
A separately acquired patent may qualify as an intangible asset when the relevant recognition conditions are met.
Remember the difference
Goodwill is dealt with separately in business-combination rules. Internally generated brands and employee skills are not automatically recognized assets.
Examples are simplified for learning. Where a term depends on US law, IFRS, US GAAP or a historical rule, check the context explained above and the requirements relevant to your course.
Study references: OpenStax financial accounting and managerial accounting. For reporting requirements, consult the applicable IFRS Standards or FASB guidance. US tax terms should be checked against the relevant tax-year IRS instructions.
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