Intangible Assets Tab
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Intangible Assets
Intangible assets are non-physical property owned by a business. The acquisition cost of an intangible asset is recovered over its economic life through amortization, rather than as an expense during a single accounting period. To be considered an intangible asset, property should generally:
- Be expected to enhance cash flow for longer than one major accounting period (usually one year)
- Cost more than the capitalization threshold (set either by company policy or local law)
Intangible assets can be related to marketing, intellectual property, contracts, or technology and can include, among other things:
- Patents
- Trade or internet domain names
- Licenses
- Customer lists
- Copyrights
- Franchises
- Trade secrets
- Good will
Often, intangible assets are acquired when an ongoing business is purchased. Part of the purchase price is allocated to intangible assets. In other cases, intangible assets are created through reallocation of prior, internal expenses, such as when research and development costs are converted into the intangible asset of a patent. Local law and accounting standards often influence what can or must be considered an intangible asset.
Refer to Manager's Intangible Assets Instructions if you want to use this feature.