An intangible asset is an asset that is not a physical object. Some examples of intangible assets are copyrights, trademarks, brand names, patents, goodwill, and business methodologies. Tangible assets, on the other hand, would include things like land, buildings, equipment, goods, or even employees.
An intangible asset can have actual market value, and be transferable from one company to another. A brand name previously used by one company could be sold to another. Such a purchase might be made as a way of marketing products under the new name, if it is perceived to be profitable enough. Another example would be a company selling knowledge of a particular strategy—like a marketing strategy—to another business.
Intangible assets can be categorized either as indefinite or definite (sometimes indefinite or identifiable). Some definite intangible assets are patents and copyrights, which expire after a given amount of time. A trademark, goodwill, or a company name are examples of definite intangible assets. Intangible assets are closely related to intellectual property rights.
Intangible assets are reevaluated annually to determine whether or not they’ve become impaired. An impaired intangible asset is one on which a loss has occurred, and the loss can be measured by subtracting the asset’s fair value from its carrying value.
For these reasons, one intangible asset might actually be the most valuable asset a company possesses. A powerful brand name or patent might be the best thing a company has going for it, worth millions to the right company. Many companies devote much time and effort to producing more potential profit through intangible assets through research and development.
Posted in 
Tags: 