Accounting for Intangibles.

Accounting for
Intangibles

Introduction
Intangible asset is referred to as the asset which is not
physical in nature. The examples of the intangible assets
are the patent, copyright, trade mark are the intangible
assets. The brand name of a company falls under the
category of the indefinite intangible assets as it depends
on the performance of the company. The agreement in
this case is limited and classified into a definite asset.

Characteristics of Intangible Assets
• Intangible assets are able to generate revenue on their own
terms.
• They are applicable for the legal transfer of ownership and
legal enforcements.
• The assets in this case are able to generate the cash flow,
profits and additional resources in the business.
• They can further be separated from the underlying assets.
• The capital assets in this case are carried over to the
expenditures which are incurred recently.