Intangible assets are non-physical assets with economic value: patents, trademarks, copyrights, customer lists, brand, software, goodwill, and licenses. Reported separately on the balance sheet. Acquired intangibles (from purchases or acquisitions) are recorded at cost; internally generated intangibles (developed brand, internal software) generally aren't capitalized (immediately expensed). Definite-life intangibles amortize over useful life; indefinite-life intangibles (some trademarks, goodwill) test for impairment annually. Modern S&P 500 companies derive most value from intangibles — yet GAAP captures only a fraction. The disconnect between book value and market value largely reflects unrecorded intangibles.
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Accounts Payable
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Intangible Asset
August 22, 2026 · Aditya Gupta
Accounting
Related terms
Accounts Payable
Accounts Payable (A/P) is money a company owes to suppliers for goods or services received but not yet…
Accounts Receivable
Accounts Receivable (A/R) is money owed to a company by customers for goods or services delivered on credit.…
Accrual Accounting
Accrual accounting recognizes revenues when earned (regardless of cash receipt) and expenses when incurred (regardless of cash payment)…
Accrued Expense
An accrued expense is a cost recognized in the income statement before cash is paid — recorded as…
Amortization
Amortization is the systematic allocation of intangible asset cost over its useful life — analogous to depreciation but…
Audit
An audit is an independent examination of a company's financial records, internal controls, and statements — typically conducted…
