Financials

Intangible assets

Nonphysical assets such as patents, customer relationships, trademarks, licenses, or developed technology.

What it means

Intangible assets can be acquired or internally developed depending on accounting rules. Some are amortized over useful lives, while others are tested for impairment.

Example

A company may record customer relationships and developed technology after acquiring a software business.

What not to infer

The balance sheet amount is not necessarily the current market value of the asset.