Marvelous Intangible Assets Balance Sheet Example
The further down a balance sheet you move the more complex assets become.
Intangible assets balance sheet example. The Business Development Bank of Canada. Intangible assets are types of assets with no physical substance but identifiable and flow the economic benefits to the company. An Example of a Balance Sheet.
Such benefits can be in the form of additional revenue cost savings or increasing market share. An intangible asset can be considered indefinite a brand name for example or definite like a legal agreement or contract. Examples of intangible assets include a companys customer lists brand name data or workforce.
Below is a portion of Apples balance sheet from their 2017 10K statement. Intangible assets were approximately 22 billion for Apple in 2017 highlighted in blue. Since an intangible asset is classified as an asset it should appear in the balance sheet.
Examples are patents trademarks and copyrights. Intangible assets on the balance sheet include patents rents royalties trademarks copyrights and things that dont have a physical form. An intangible asset is a non-physical asset that has a multi-period useful life.
LinkedIn with Background The Balance. Intangible assets are generally both nonphysical and noncurrent. The easiest way to explain this type of asset is to consider rent.
A company that buys a lot of subsidiaries will often report large intangible asset balances. Intangible assets are only listed on a companys balance sheet if they are acquired assets and assets with an identifiable value and useful lifespan that can thus be amortized. They appear in a separate long-term section of the balance sheet entitled Intangible assets.