INTANGIBLE ASSETS Meaning and
Definition
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Intangible assets refer to non-physical resources or rights that hold value to a company but do not have a physical existence. These assets are typically long-term in nature and cannot be touched or seen, making them different from tangible assets like buildings, equipment, or inventory. Intangible assets are vital for many businesses as they contribute to their competitive edge and future potential for generating revenue.
There are various types of intangible assets, including intellectual property rights such as patents, copyrights, trademarks, and trade secrets. These rights allow entities to protect their innovative ideas, processes, inventions, or brand identity from being copied or used by others. Other intangible assets could include software, contracts, licenses, customer relationships, reputation, goodwill, and proprietary technology.
Intangible assets are reported on a company's balance sheet as an asset, reflecting their value at the time of acquisition or creation. However, unlike tangible assets, it is often more challenging to determine the exact value of intangible assets, as they lack a physical form and are subject to subjective assessments. They are typically amortized or depreciated over their estimated useful life.
When analyzing a company's financial health or value, intangible assets are crucial considerations, as they can significantly impact a company's overall worth. Furthermore, these assets may have a substantial influence on business operations, market position, and the ability to attract customers or investors. Thus, managing and protecting intangible assets is a critical aspect of corporate strategy and long-term growth.
Common Misspellings for INTANGIBLE ASSETS
- untangible assets
- jntangible assets
- kntangible assets
- ontangible assets
- 9ntangible assets
- 8ntangible assets
- ibtangible assets
- imtangible assets
- ijtangible assets
- ihtangible assets
- inrangible assets
- infangible assets
- ingangible assets
- inyangible assets
- in6angible assets
- in5angible assets
- intzngible assets
- intsngible assets
- intwngible assets
Etymology of INTANGIBLE ASSETS
The etymology of the word "intangible assets" can be broken down into its individual components:
1. Intangible: The word "intangible" originated in the late 16th century and comes from the Latin word "intangibilis", which means "that cannot be touched". It is formed by combining the prefix "in-" (meaning "not" or "without") with the Latin word "tangere" (meaning "to touch").
2. Assets: The word "assets" is derived from the Old French word "acetz", which means "enough" or "property". It entered the English language around the early 18th century and refers to resources, possessions, or properties with value, typically owned or controlled by an individual, company, or organization.
Similar spelling words for INTANGIBLE ASSETS
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