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Accounting
Intangible Asset
A non-physical asset that has value, like a brand name, patent, or customer list.
Intangibles are recorded at cost and then amortized over their useful life (or tested for impairment if they have an indefinite life). Common examples are trademarks, copyrights, and goodwill.It's like owning the secret recipe for Coca-Cola — you can't touch it but it's worth billions.
Real world: When a company buys another business, the famous logo or patent it acquires is recorded as an intangible asset on the balance sheet.
💡 Intangible assets can be some of the most valuable things a company owns — they just don't show up as shiny machines or buildings.