Intangible Assets
Non-physical assets with economic value, such as patents, trademarks, brand names, customer lists, and software.
What is Intangible Assets?
Intangible assets are identifiable non-physical assets that generate economic benefits for a company, including patents, trademarks, copyrights, customer relationships, software, licenses, and trade secrets. They are recorded on the balance sheet when acquired through purchase (e.g., in a business combination) but internally generated intangibles like brand value are generally not recorded under GAAP. Finite-lived intangibles are amortized over their useful life, while indefinite-lived intangibles (like certain trademarks) are tested annually for impairment instead. In knowledge-economy industries such as technology, media, and pharmaceuticals, intangible assets often represent the majority of a company's true economic value.
Example
After Disney acquired 21st Century Fox, it recorded billions in intangible assets including franchise rights for Avatar, X-Men, and other IP — assets with finite useful lives that are amortized annually, creating significant non-cash charges against GAAP earnings.
Source: Investopedia — Intangible Assets