What are intangible assets?

Intangible assets are non-physical assets that have economic value, such as patents, trademarks, copyrights, and goodwill. Unlike tangible assets, intangible assets cannot be physically touched and are often amortized over time.

Example: A company acquires a trademark as part of a business acquisition and records it as an intangible asset on the balance sheet.

Related terms: Amortization, Fixed Assets, Balance Sheet