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Balance sheet

Intangible Assets

Non-physical assets with economic value — patents, trademarks, software, licenses, and customer lists.

Part of the Reading Financial Statements course · Lesson 19 of 33
Formula
Acquisition Cost − Accumulated Amortization − Impairments

What it is

Intangible Assets are resources that lack physical substance but still carry economic value, such as patents, trademarks, copyrights, licenses, software, and acquired customer relationships. On the balance sheet they usually refer to identifiable intangibles, which are reported separately from goodwill. They appear among non-current assets.

Why it matters

Intangibles can be the core of a company's competitive advantage, especially in technology, pharma, and brand-driven businesses. A pitfall is that internally created intangibles (like a homegrown brand or self-developed software) are often expensed rather than recorded, so the balance sheet can understate a company's true intangible strength while acquired intangibles can be overstated.

How it's calculated

Recorded at cost when purchased or acquired, then reduced over time by amortization for finite-life intangibles, or tested for impairment if their life is indefinite.

How Quintarthai uses it

Intangible Assets are shown in the balance sheet within the Financials tab on each company's deep-analysis page at /app/.

Cross-border note. IFRS permits capitalizing certain development costs as intangibles when criteria are met, while US GAAP generally requires expensing most research and development, so Canadian filers may carry intangibles that US peers would not.

FAQ

How are intangible assets different from goodwill?
Intangible assets are identifiable and can be valued or sold separately (like a patent), whereas goodwill is the unidentifiable premium left over after an acquisition.
Why might a strong brand not show up on the balance sheet?
Internally built brands are usually expensed as they are created, so only brands acquired through a purchase typically appear as recorded intangible assets.
Related terms
See Intangible Assets on a real company
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