Intangible Assets

Intangible Assets are Long term Assets. They defiantly have a value but cannot be touched. Copyrights and Goodwill are examples of Intangible Assets. Their value can be depreciated business expense.

Intangible Assets are classified in Balance Sheet under Long Term Assets. An Asset is classified as an Intangible Asset because it is an Asset, but they are not physical in nature. They cannot be touched. The Balance Sheet classification of Intangible Assets includes Intellectual Property, Trademarks, Patents and Copyrights and Goodwill. The value of an Intangible Asset can be amortised as a viable business expense depreciating the value of the Intangible Asset over time. Amortisation is a non-cash item and will reduce the taxable income of a Company.