What is Intangible Assets? The definition of intangible assets is that they are not controlled or owned by anyone. An intangible asset typically does not have physical material. Examples are licenses, patents, proprietary systems, trademarks, and domain names. However, this is opposed to financial assets and fixed assets.
What is Intangible Property? This includes any materials, including computer equipment, processes, designs, processes, inventions, know-how, information, inventions, innovations, financial resources (such as capital and cash), and the like. Other intangible assets that are often considered are patents, copyrights, business strategies, human strategies, client lists, business relationships, brand names, and business processes. Intellectual property assets include trademarks, designs, systems, and software.
What is Fixed Asset? A fixed asset is a definite asset that cannot be changed without reducing the value of the asset. Fixed assets are intangibles included in the equity and available for distribution. Examples of fixed assets are accounts receivable and inventory, fixed assets include plant and machinery, fixed assets also include financial liabilities such as accounts payable and accrued expenses.
What is Net Worth? Net worth is the value that actually does exist. It is the value that can be measured against the worth of an entity, such as an account or a real estate. It is net worth, therefore, does not include the value of the depreciated cash flows of a fixed asset. Net worth includes the carrying cost of the assets, less the depreciated value.
What is Real Estate? Real estate assets are the tangible fixed assets that are owned by individuals or corporations. They include mortgages, land, and fixtures and fittings. Real estate assets, therefore, include structures such as apartment buildings, office buildings, condominiums, shopping centers, warehouses, and agricultural land.
What is Intangible Assets? Intangible assets are not fixed assets. They are also not necessarily easy to measure. Examples include knowledge, work habits, strategies, trade secrets, and innovations. Knowledge, work habits, strategies, trade secrets, and innovations are intangibles that may be difficult for a company to replace.
What is Not Valuable? The term “what is not valuable” refers to those intangibles that are not fixed or permanent in nature. These include future payments or rights, indefinite duration, and exchange value. These intangibles are not necessarily a drain on capital, but they do not have a long-term practical value. For example, future payments and rights do not have a long-term practical value if the person who receives them has no guarantee of renewal.
What is a Liability? A liability is any obligation, promise, or contract involving an individual or entity. Liabilities include claims of negligence, strict liability, and contract liability. What is Not Valuable? A non-income producing asset, such as plant, equipment, furniture, supplies, property, inventory, goodwill, accounts receivable, and accounts payable, is not a valuable asset. The value of an intangible is determined according to its relationship to the future cash flow produced by the assets.
What is a Net Worth? Net worth is an estimate of a person’s net worth or asset value. The value of intangibles is based on the current fair market value of the intangibles. Fair market value is based on an assessment of the cost of the intangible using information such as current and historical costs, whether the intangible will generate cash flows, the amount it will cost to purchase, and the amount it will cost to maintain throughout the life of the intangibles.
What is the Total Intangibles Assets?
The total assets refers to the value of all intangibles, including depreciated or immaterial assets, less the goodwill and net book value of the intangibles. Goodwill is a negative charge against the assets.
A valuable asset is an asset that can be immediately purchased or sold. Many intangibles are easily recognizable or have a recognizable value. This includes patents, trademarks, trade names, financial statements, business strategies, goodwill, and so forth.
What is the Location of Intangible Assets? A location is a virtual location where an asset is physically located. Many businesses have knowledge about their tangible assets and intangibles in one location. For example, if you own a building containing the recipes for your new coffee recipe, the recipes are on the building and are readily available to anyone who needs them. However, there may be parts of the building that are difficult to access and are not visible from the kitchen table.