What are the main types of intangible assets?

Full Explanation

In a purchase price allocation (PPA) under IFRS 3 and ASC 805 — the accounting standards used when one company acquires another — intangible assets are identified and separately valued. The illustrative examples that accompany the standards group them into five classes, which are a guide rather than an exhaustive list. Marketing-related covers trademarks, trade names, and domain names. Customer-related covers customer lists, contracts, and non-contractual relationships. Artistic-related covers copyrights, content libraries, and creative works. Contract-based covers licences, franchise agreements, and favourable supply contracts. Technology-based covers patents, proprietary software, and trade secrets. An asset only qualifies if it is identifiable — separable from the business, or arising from contractual or legal rights — which is why goodwill is the leftover amount after the identifiable intangible assets are valued, not an intangible asset in its own right. For founders and finance teams, knowing which class an asset falls into shapes how it is reported, amortised, and defended in due diligence.

These five classes exist for financial reporting, so they only capture what a company can separate out and put a number against after an acquisition. Opagio takes this recognised base further with the Opagio 12 framework: twelve value drivers that also count the assets standards don't. They are: Brand & Reputation (the trust and recognition a brand creates), Customer Capital (relationships, contracts and retention strength), Technology & Innovation (software, R&D and engineering capability), Content & IP (patents, copyrights and proprietary content), Data & Intelligence (proprietary data and analytics infrastructure), Switching Costs & Lock-In (integration depth and the cost of a customer leaving), Network Effects & Platforms (value that compounds as more participants join), Human Capital (skills, leadership and key-person dependency), Organisational Capital (documented, scalable processes), Culture & Ways of Working (values and decision-making norms), Regulatory & Compliance (licences and accreditations), and Ecosystem & Partnerships (strategic partnerships and channel agreements). Each driver maps, in the Value Drivers Register, to the valuation method best suited to it — giving companies one consistent lens for identifying, assessing and valuing the full spectrum of their intangible value.

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