Intangible asset


An intangible asset is one that, as its name specifies, is not tangible, that is, it cannot be physically perceived. It is immaterial in nature, such as the value of a clothing brand, since it cannot be measured physically and there is only an estimate. In the accounting area, this asset may even have the ability to generate economic benefits in the future and may be controlled by its main economic entity.

These bonds are characterized by not having a physical substance susceptible to economic valuation. In the 1970s, these critical approaches to accounting business issues that had been used since ancient times managed to awaken through information, globalization and new organizational and public links that achieved a new management as far as marketing is concerned. Taking into account that accounting is based on the control of active movements of an entity that generates value, an asset is organized that plays the role of a resource controlled by said entity in which it may or may not obtain tangible or intangible benefits.

In this case, the term intangible is used in order to give a restricted meaning to assets that produce benefits equal to assets for use or income and that cannot be physically materialized. This concept was carried out in order to incorporate economic balances of the assets of an organization to intangible assets, as is the case of the aforementioned, brand value, the knowledge that is developed in that organization, structure of employees, customers or business growth. .

Intangible assets can be classified in different ways according to their range and condition, some of them depend on the possibility, incorporation, sales and accounting possibilities, which are:

Possibility of having your own identity:

  • Identifiable: can be trademarks, copyrights, licenses.
  • Non-identifiable: this in the case of advertising, organization expenses, etc.

Form of incorporation:

  • Acquired (exchanges with third parties): concession and franchises.
  • Developed by own identity: development expenses.

Possibility of selling separately:

  • Sold separately.
  • Not sold separately.

Possibility of recognizing them for accounting purposes:

  • Accounting recordable.
  • Not recordable for accounting purposes.