Intangibility
(noun)
The state of not being touchable. For example, an idea is real, but not tangible.
Examples of Intangibility in the following topics:
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Analyzing Intangible Assets
- Intangible assets are defined as identifiable non-monetary assets that cannot be seen, touched or physically measured.
- Intangible assets are created through time and effort, and are identifiable as a separate asset .
- Intangible assets are typically expensed according to their respective life expectancy.
- Intangible assets have either an identifiable or indefinite useful life.
- Intangible assets with indefinite useful lives are reassessed each year for impairment.
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Characteristics of Intangible Assets
- Intangible assets are identifiable non-monetary assets that cannot be seen, touched, or physically measured.
- Intangible assets have a useful life that is either identifiable or indefinite.
- Intangible assets with indefinite useful lives are assessed each year for impairment.
- Internally Created Intangibles, and Limited-Life vs.
- Indefinite-Life Intangibles.
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Reporting Intangibles
- Intangible assets are either recorded at cost or expensed as they are created.
- Intangible assets lack physical existence.
- Intangibles purchased from another party are recorded at cost .
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Intangibility
- Intangibility is used in marketing to describe the inability to assess the value gained from engaging in an activity using any tangible evidence.
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Limited-Life Impairment
- Intangible assets are non-monetary assets that cannot be seen, touched, or physically measured.
- Intangible assets are created through time and effort, and are identifiable as separate assets.
- Intangible assets are amortized to reflect their consumption, expiry, obsolescence or other decline in value as a result of use or the passage of time, process which is similar to the deprecation process for tangible assets.
- Intangible assets can have either a limited or an indefinite useful life.
- Intangible assets with a limited-life are amortized on a straight-line basis over their economic or legal life, based on whichever is shorter.
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Valuation of Intangible Assets
- Intangible assets generally arise from two sources: (1) exclusive privileges granted by governmental authority or by legal contract, such as patents, copyrights, franchises, trademarks and trade names; and (2) superior entrepreneurial capacity or management know-how and customer loyalty , which is called goodwill.
- Intangible assets are initially recorded on financial statements at their purchase price, or the cost of acquiring the asset.
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Amortization of Intangible Assets
- Intangible assets have a useful life that is either identifiable or indefinite.
- Intangible assets with identifiable useful lives are amortized on a straight-line basis over their economic or legal life, whichever is shorter.
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Indefinite-Life Impairment
- Intangible assets with identifiable useful lives (limited-life) include copyrights and patents.
- Intangibles can also be classified as: legal intangibles or competitive intangibles.
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Types of Long-Lived Assets
- Intangible assets includes non-physical resources and rights that a firm deems useful in securing an advantage in the marketplace.
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Assets
- Intangible assets are nonphysical resources and rights that have a value to the firm because they give the firm some kind of advantage in the market place.