List of Tangible and Intangible assets

Meaning

Tangible assets are those assets that can be measured, touched, and felt. These are long-term assets. These assets are used to help produce goods and services.

These assets can be used as collateral when loans need to be borrowed. These assets are used for the long term and are very efficient for operational use. These assets need maintenance and repair.

Intangible assets are those assets that cannot be touched or felt but still hold value in the company.

These assets help as an advantage when there are competitors as it helps in brand recognition and reputation. This will lead to an increase in revenue due to the reputation. It also adds value to the financial reports.

List of Tangible and Intangible Assets

Notes

Intangible assets: (invisible)

1. Legal fees – It is an intangible asset as it refers to the fees incurred in the registration of trademarks and patents.
2. Patents – A patent is an exclusive right that is granted to an inventor by law which permits them to exclude anyone from producing, using, or selling their invention for a given period.
3. Licenses – It refers to a right that is purchased to operate a business.
4. Trademark – It is a legal right that protects the distinct identity of a company. It can comprise a name, logo, slogan, or anything that depicts a company’s unique identity.
5. Franchises – Franchises is a license/permission granted by the owner, under certain conditions, to produce or sell a product or service.
6. Goodwill – It refers to the reputation of a company which is determined by its profits and losses.
7. Copyrights – It is an intellectual property right obtained by a creator usually in the fields of art, music, literature, etc, which restricts a person from publishing the content without the consent of the owner.
8. Brand equity – Brand equity is the value of the unique identity of a business. It can be positive or negative.
9. Broadcast rights –  Broadcast rights refer to the rights obtained under a licensing agreement for broadcasting a program.
10. Research & Development –  Research and development includes the development of software and technological innovations for a company.

Tangible assets: (visible)

1. Plant & Machinery – Plant and machinery are used to convert raw materials into finished goods. They are recorded in the books of accounts at a depreciated value.
2. Cash and Cash equivalents – It refers to the cash in hand and cash at the bank. The cash equivalents are usually stated at the value they are convertible into cash.
3. Land & Building – It represents the ownership of a physical property of the business.
4. Equipment –  Equipment used in the production activities of a business.
5. Furniture & Fixtures – Furniture and fixtures are movable equipment that is a part of the office layout.
6. Inventory – Inventory is valuable items that are usually stored in a warehouse with a plan of being sold or utilized in the process of production.
7. Marketable securities – Marketable securities refer to the stocks, bonds, and shares that can be easily converted into cash.
8. Investments – Investments refer to a liquid asset that is purchased with the expectation of being sold in the future.
9. Raw materials – Raw materials are tangible materials used for manufacturing goods.
10. Vehicles – The vehicles used by the proprietor such as cars, trucks, or tractors used for the operating activities of a business.

>Related Long Quiz for Practice Quiz 26 – Intangible Assets

>Related Long Quiz for Practice Quiz 32 – Tangible Assets