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An intangible asset is an asset that is not physical in nature. Corporate intellectual property (items such as patents, trademarks, copyrights, business methodologies), goodwill and brand recognition are all common intangible assets in today's marketplace.
intangible assets are initially recorded on financial statements at their purchase price, or the cost of acquiring the asset. If an intangible asset is internally generated, its cost is immediately expended.
The valuation of intangible assets with identifiable useful lives such as patents, trademarks, and copyrights are initially valued at acquisition costs. The value of these assets can be increased or decreased, based on the outcomes of court proceedings. If a company incurs legal costs to successfully defend an intangible asset, those costs are capitalized and increase the value of the intangible. On the other hand, if a company is unsuccessful in defending an intangible asset, the intangible is worthless and the company is required to write it off.
1-intellectual capital.
2-copyright.
3-trademarks and trade names.
4-goodwill.
5-trade secrets.
6-evidence of the development work (concerning acts of human resources) which are expensive and serve the long-term work.
7-any work costing established in developed or provided by the long-term needs that covers more than a year, such as research and development costs-incorporation expenses.
And it is introduced into improving item called non-tangible assets Asset Tab
It is calculate in the balance sheet only in the acquisition cost of these assets , not the value of the assets or the sales value of the assets .
Patent
Copyright
Trademark
Goodwill
agree with answers provided
An intangible asset is an identifiable non monetary asset without physical substance. The asset must be controlled by the entity as a result of events in the past and something from which the entity expects future economic benefits Examples , computer software, patents copyrights, motion picture firms, customer lists, franchises and fishing rights.
An intangible assets with useful should be amortised over its expected useful life.
An intangible asset with an indefinite useful life should not be amortised but must be tested for impairment at least annually.
In the balance sheet, intangible assets should be measured at cost, but subsequenttly they can be carried at cost or at a fair value.
Definition:
Intangible asset is an identifiable non-monetary asset without physical substance. It does not have the physical shape. For e.g, Patent Right, Trade Mark, Technical know how, etc.
Recognition criteria of Intangible assets is as follows as per IAS 38;
If, it was probable that the expected future economic benefits attributable to
the asset would flow to the entity, and its cost could be measured reliably. In simple sentence, cost should be able to measure and having the economic benefits.
Long term resources of an entity with limited or unlimited life, non-monetary assets without physical substance, computed by deducting the net value of its tangible assets from its market value.
Internally developed, intangible assets do not appear as such on a company's balance sheet. They are only listed on a company's balance sheet, if they are acquired assets and assets with an identifiable value and useful lifespan that can thus be amortized.
Intangible assets are presented in the asset sections of the balance sheet net of accumulated amortization, and it include items with non-physical nature like copyright, brands, franchise, patent, and goodwill. The useful life of the intangible asset could be difinite if it has a limited useful life such as the case where the company make a contract to use a patent for a specific number of years. Also, it can be classified as indifinite when the company can use it as long it exists.
Mr. : manseer muhammed ali has a good answer above of your question
sorry,i am not specialist for accountant
