Intangible assets generally do not have physical characteristics, are not realized apart from the business as a whole and may have little or no liquidation value. They usually require some cash outlay at the time of acquisition. Intangible assets are amortized, and should be shown on the balance sheet net of reserve for amortization. Examples include intellectual property (such as patents and trademarks), goodwill, capitalized R&D expenses, computer software, leasehold improvements, and deferred charges.

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