tangible assets

• Tangible Assets

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Asset Tangible assets

1 Tangible assets are those that have a physical substance, such as

currencies, buildings, real estate, vehicles, inventories, equipment, and

precious metals


Valuation (finance) - Valuation of intangible assets

1 Valuation models can be used to value intangible assets such as for patent

valuation, but also in copyrights, software, trade secrets, and customer relationships. Since few sales of benchmark intangible assets can ever be observed, one often

values these sorts of assets using either a present value model or estimating the costs

to recreate it. Regardless of the method, the process is often time-consuming and

costly.https://store.theartofservice.com/the-tangible-assets-toolkit.html

Valuation (finance) - Valuation of intangible assets

1 Valuations of intangible assets are often necessary for financial

reporting and intellectual property transactions.


Assets - Intangible assets

1 Intangible assets lack of physical substance and usually are very hard to evaluate. They include patents, copyrights, franchising|franchises,

Goodwill (accounting)|goodwill, trademarks, trade names, etc. These

assets are (according to US GAAP) amortized to expense over 5 to 40

years with the exception of goodwill.


Assets - Intangible assets

1 Websites are treated differently in different countries and may fall

under either tangible or intangible assets.


Assets - Tangible assets

1 Tangible assets are those that have a physical substance, such as

currency|currencies, buildings, real estate, vehicles, Inventory|

inventories, capital equipment|equipment, and precious metals.


Intangible assets

1 'Intangible assets' have been argued to be one possible contributor to the

disparity between company value as per their accounting records, and company value as per their market capitalization.

Considering this argument, it is important to understand what an

intangible asset truly is in the eyes of an accountant. A number of attempts have been made to define intangible assets:


Intangible assets

1 The lack of physical substance would therefore seem to be a defining characteristic of an intangible asset. Both the IASB and FASB definitions specifically preclude monetary

assets in their definition of an intangible asset. This is necessary in order to avoid the

classification of items such as accounts receivable, derivatives and cash in the bank as an intangible asset. IAS 38 contains examples

of intangible assets, including: computer software, copyright and patents.


Intangible assets - General standards

1 The International Accounting Standards Board (IASB) offers some

guidance (IAS 38) as to how intangible assets should be accounted for in financial

statements. In general, legal intangibles that are developed

internally are not recognized and legal intangibles that are purchased from third parties are recognized.

Wordings are similar to IAS 9.https://store.theartofservice.com/the-tangible-assets-toolkit.html

Intangible assets - General standards

1 Under US GAAP, intangible assets are classified into: Purchased vs.

internally created intangibles, and Limited-life vs. indefinite-life

intangibles.


Intangible assets - Expense allocation

1 Trademarks and goodwill are examples of intangible assets with indefinite useful lives


Intangible assets - Taxation

1 Some types of intangible assets are categorized based on whether the

asset is acquired from another party or created by the taxpayer


Amortization (business) - Amortization of intangible assets

1 In accounting, amortization refers to expensing the acquisition cost minus the residual value of intangible assets (often intellectual property such as patents and

trademarks or copyrights) in a systematic manner over their estimated

useful economic lives so as to reflect their consumption, expiry, obsolescence or other decline in value as a result of

use or the passage of time.



1 A corresponding concept for tangible assets is depreciation. Methodologies for

allocating amortization to each accounting period are generally the same as for

depreciation. However, many intangible assets such as Goodwill (accounting)|

goodwill or certain brands may be deemed to have an indefinite useful life and are therefore not subject to amortization (although goodwill is subjected to an

impairment test every year).https://store.theartofservice.com/the-tangible-assets-toolkit.html


1 Under International Financial Reporting Standards, guidance on accounting for the amortization of

intangible assets is contained in IAS 38. Under Generally Accepted

Accounting Principles (USA)|United States generally accepted accounting

principles (GAAP), the primary guidance is contained in FAS 142.


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tangible assets

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