Intangible Asset

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. An intangible asset can be classified as either indefinite or definite depending on the specifics of that asset. A company brand name is considered to be an indefinite asset, as it stays with the company as long as the company continues operations. However, if a company enters a legal agreement to operate under another company's patent, with no plans of extending the agreement, it would have a limited life and would be classified as a definite asset.

While intangible assets don't have the obvious physical value of a factory or equipment, they can prove very valuable for a firm and can be critical to its long-term success or failure. For example, a company such as Coca-Cola wouldn't be nearly as successful were it not for the high value obtained through its brand-name recognition. Although brand recognition is not a physical asset you can see or touch, its positive effects on bottom-line profits can prove extremely valuable to firms such as Coca-Cola, whose brand strength drives global sales year after year.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Intangible asset — Intangible assets are defined as identifiable non monetary assets that cannot be seen, touched or physically measured, which are created through time and/or effort and that are identifiable as a separate asset. There are two primary forms of… …   Wikipedia

  • intangible asset — see asset 2 Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. intangible asset n …   Law dictionary

  • intangible asset — A legal claim to some future benefit, typically a claim to future cash. goodwill, intellectual property, patents, copyrights, and trademarks are examples of intangible assets. Bloomberg Financial Dictionary An intangible asset is an asset that… …   Financial and business terms

  • Intangible asset — A legal claim to some future benefit, typically a claim to future cash. Goodwill, intellectual property, patents, copyrights, and trademarks are examples of intangible assets. The New York Times Financial Glossary * * * intangible asset… …   Financial and business terms

  • intangible asset — invisible asset An asset that can neither be seen nor touched. The most common of these are competencies, goodwill, and intellectual properties such as patents, trademarks, and copyrights. Goodwill is probably the most intangible and invisible of …   Accounting dictionary

  • intangible asset — invisible asset An asset that can neither be seen nor touched. The most common of these are competencies, goodwill, and intellectual property such as patents, trademarks, and copyrights. Goodwill is probably the most intangible and invisible of… …   Big dictionary of business and management

  • intangible asset — noun assets that are saleable though not material or physical • Syn: ↑intangible • Hypernyms: ↑assets • Hyponyms: ↑good will, ↑goodwill * * * intangible asset UK US noun …   Useful english dictionary

  • intangible asset — UK / US noun [countable] Word forms intangible asset : singular intangible asset plural intangible assets business something that a company has, such as the good opinion of its customers, that has value to the company although its worth cannot be …   English dictionary

  • intangible asset — Property that is a right such as a patent, copyright, trademark, etc., or one which is lacking physical existence, such as goodwill. A nonphysical, noncurrent asset which exists only in connection with something else, such as the goodwill of a… …   Black's law dictionary

  • intangible asset — nematerialusis turtas statusas T sritis Gynyba apibrėžtis Nefizinis turtas, toks kaip prestižas, intelektinės nuosavybės teisės. atitikmenys: angl. intangible asset ryšiai: susijęs terminas – trumpalaikis turtas susijęs terminas – ilgalaikis… …   Lithuanian dictionary (lietuvių žodynas)

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.