Intangible Asset
Definition
A non-physical asset that derives value from intellectual or legal rights, or from the competitive advantage it provides. Examples include brands, patents, software, customer relationships, data, organisational know-how, and human capital. Intangible assets now represent over 90% of the value of S&P 500 companies.
Related Terms
Related FAQ
What is the difference between goodwill and intangible assets?
Goodwill is the residual value paid above the fair value of all identifiable net assets in an acquisition. Intangible assets are specific, identifiable non-physical assets like brands, patents, and customer relationships.
Read full answer →What is IAS 38 and how does it affect intangible asset reporting?
IAS 38 is the IFRS standard governing recognition, measurement, and disclosure of intangible assets — it requires assets to be identifiable, create future benefits, and allow reliable measurement.
Read full answer →What is transfer pricing and how does it affect intangible assets?
Transfer pricing requires related entities to charge market prices for transactions (including intangible asset licences) — mispricing is a red flag for HMRC and can trigger audits and penalties.
Read full answer →Put this knowledge to work
Use Opagio's free tools to measure and grow the intangible assets that drive your business value.