What are Intangible Assets? How to Calculate It?

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##### What are Intangible Assets? How to Calculate It?

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# What are Intangible Assets? How to Calculate It?

Intangible assets are company resources or assets that do not have a physical form.

Even though they don’t have a physical form, intangible assets have a quantifiable value.

So, what are the characteristics, and how to calculate them? Check out the reviews here!

## What are Intangible Assets?

Intangible assets are assets that do not have a physical form, but these assets have value for the company.

Of course, intangible assets can provide long-term benefits. One example is a long-term crypto investment.

Intangible assets can be defined as assets that have long-term financial value when their value lasts at least one year.

Examples of intangible or intangible assets can be seen in patents, trademarks, intellectual property, and others.

## What are the Characteristics of Intangible Assets?

Intangible assets have several characteristics, one of which is intangible. Here’s an explanation.

### 1. Intangible

Intangible is meant here. Namely, the asset does not have a physical form.

For example, a patent certificate owned by a company. However, what is meant is not the certificate but the intellectual property.

### 2. Undefined

Intangible assets cannot be defined either. If you take the example of the patent certificate earlier, intellectual property needs to be clearly defined even though the asset exists and belongs to the company.

The following characteristic is that these assets are under the control of the business. The company can make a profit from the use of these assets.

## How to Calculate Intangible Assets

Even though it is intangible, intangible assets can still be counted. The trick is to subtract the market value from the company’s book value.

Here is the formula Mathematically:

Intangible Assets = Market Value – Company Book Value

The company’s book value can be obtained by subtracting the total value of the company’s assets from liabilities.

## Terms Relating to Intangible Assets

Following are several other terms related to intangible assets.

### 1. Intangible Products

The intangible assets on this one are products in the form of regulations, agreements, cooperation, ideas, and the name of a brand or brand.

### 2. Intangible Values

Intangible value is the value of assets that do not have a physical form, ranging from economic value to other values.

### 3. Intangible Costs

Intangible costs are uncertain costs that occur due to the influence of the operating time of activities.

The long operating time occurs due to the obstacles’ influence.

## Types of Intangible Assets

Of course, it would be difficult to imagine what an intangible asset looks like, but you can basically recognize it from its types. Here is the review.

### 1. Patents

The definition of this type of intangible asset is the right given to a company to carry out production.

In addition, a patent can also give the right to sell an invention for a certain period.

Determine the value of a patent from the costs that have been incurred up to obtaining the patent.

In English as “copyright,” copyright is a right granted by the government regarding copyright ownership to produce, reproduce, and trade publications and artistic works.

Several factors determine the value itself, but almost the same as a patent, namely, from all the costs incurred to obtain the copyright.

Trademarks in English are termed “trademarks.” Trademarks are words, symbols, or phrases that are used as the identity of a product or business.

Being an important part of running a business, trademarks can indirectly increase sales.

### 4. Goodwill

Goodwill usually arises when an asset is purchased higher than the market price.

The difference between the price obtained from the asset’s purchase and the market price will be counted as goodwill.

### 5. Franchise/Franchise Agreement

Franchise, which in Indonesian is referred to as “franchise,” is an agreement above the contract between the party that takes and the party that gives the franchise.

It can take the form of the right to sell products, provide services, and use certain trademarks.

## Conclusion

Intangible or intangible assets are types of company assets or intangible assets. Alias does not have a physical form.

However, this type of asset is still worth it company. The determination of an asset as intangible can be done if the asset has a financial value for approximately one year.

Some of the characteristics of intangible assets are intangible, cannot be defined, and are under the control of the business.

Meanwhile, the types consist of patents, copyrights, trademarks, goodwill, and franchise agreements.

So, if you already understand Intangible Assets, now is the time to start investing in crypto assets.

The method is also straightforward. Namely, first, you download the Indodax application.

Next, you can start investing according to the type of risk profile and the number of funds you want. Good luck!

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