EndVision

An asset is anything owned by the company and is described as a tangible asset (from an office chair to land or buildings) or an intangible asset, which covers property such as registered trademarks, patents, brands and goodwill.
Tangible assets appear on the balance sheet. They are also referred to as current or liquid assets if they can be sold off to raise capital.

What Is A Tangible & Intangible Asset?

  • Tangible assets appear on the balance sheet. They are also referred to as current or liquid assets if they can be sold off to raise capital.
  • Intangible assets may also appear on the balance sheet if they have been bought for an identifiable value and have a useful lifespan that can be amortised.

Is IP Considered An Asset?

From an accounting perspective, IP is regarded as an intangible asset and may be hard to evaluate in terms of book value, unless it has been acquired (if this was included in an overall corporate acquisition, the IP should be separately enumerated and valued). Even with a book value, IP will be amortised over time (see ‘Assets’ page) as patents, in particular, have a limited shelf life.