What are intangible assets? In the operations of a company there are often long term assets that are not held for sale and do not have physical qualities. These are called intangible assets.
There are two major concerns in accounting for intangibles. The first problem is to determine the initial costs of the asset. Then there is the need to recognize the period of expiration of these costs. Intangibles has a life in excess of 1 year. This is usually done by a process called amortization. Unlimited life intangibles are subject to a yearly impairment test. Patents, copyrights, franchises and goodwill are several types of tangible assets.
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