Question

Explain the types of Intangible Assets.

Answer 1

MEANING OF INTANGIBLE ASSETS :-

Assets which do not have any physical existence are termed as intangible assets i.e., the assets that do not have any physical form. The meaning of word TANGIBLE is that can be seen and touch hence, intangible assets the word itself define are those that cannot be seen and touched.

EXPLANATION OF TYPES OF INTANGIBLE ASSETS :-

GOODWILL : Goodwill is bassically, the valuation of a brand name in accounting terms. When a bussiness is sold or merger is carried out the difference between assets and liability is taken as goodwill i.e., premium due to the brand image of bussiness.

LICENCES : License are highly valuable, under the regulatory industries. Licences are taken up as permission of the concerned authorities to carry out the concerned actions in business environment, thus are valuable tangible assets of a business.

TRADEMARKS :

Trademarks are nothing but visual pattern of brand. This gives a picturisation to the brand and hence, becomes an important valuable tangible asset.

COPYRIGHT :

It is basically, taking up a right to creative and intellectual activities.

PATENT :

This asset grant a business,an exclusive right to manufacture and sell a particular product or use a specific invention for such production.