We explain what intangible assets are, the difference between tangible and intangible assets and examples of intangible assets.
What is intangible?
The intangible is that which is impossible to touchfor one reason or another. The word comes from the Latin verb tangertranslatable as “to touch” and from the prefix “in-” of a negative type, and is very common in numerous contexts of life.
To cite an example, it is possible to refer to the “tangible reality” of things, that is, to what exists in a physical and concrete way, as well as to the “intangible reality”, which is the opposite, that is, abstract, imaginary things.
Very often we differentiate between the tangible and the intangible in specialized ways, since both things are part of our lives, the touchable and the imaginary. In fact, one of the main criteria to distinguish humanity from its animal relatives is the ability to conceive and value the intangible, that is, the imaginary.
When culture is studied, for example, the two types of elements or practices that make it up are recognized: tangible, physical cultural goods, such as important architectural works, or statues and historical objects that rest in museums. ; and on the other hand, intangible cultural assets, such as religion and its prayers, popular songs transmitted from generation to generation, or even language itself.
Tangible assets and intangible assets
Similarly, in the business and accounting world, a distinction is made between tangible goods or assets that belong to a company or an individual, and intangible goods or assets, according to the same criteria: the former are those that can be touched, or that have a physical presentation. Intangible assets are those that do not exist in physical form..
It is worth clarifying that they are called “assets” when they are part of someone's assets (the company or the individual), and at the same time they represent a benefit, or at least the possibility of receiving one. This is an important feature to distinguish assets from liabilities or debts.
Financially speaking, intangible assets can essentially be of two different types:
- Incorporeal goods that imply a privilege or rightand that when exercised can have consequences on production or the financial year, lowering costs, improving the product, etc. For example: a state tender that allows access to raw materials at a better cost.
- Elements that represent the use of a service or the consumption of a good, and that in the long run they will bring some benefitalthough immediately they may represent a deferred expense. For example: the constant supply of electrical energy, with which we can power the company's machines.
Examples of intangible assets
Below we detail some examples of intangible assets:
- Patentstrademarks or permissions granted.
- Copyright and intellectual property over a work.
- Franchises of a brand.
- Formulas secrets to making a product.
- He knowledge technological.
Continue with: Tangible
References
- “Intangible” in the Language Dictionary of the Royal Spanish Academy.
- “Intangible asset” on Wikipedia.
- “Differences between the tangible and intangible assets of a company” in Gedesco.
- “Tangible and intangible assets” in Web and Macros.
- “How do Tangible and Intangible Assets Differ?” on Investopedia.
