Intangible assets are values ​​that do not have a physical form

Intangible assets are values ​​thathave a certain value, but do not have a physical embodiment. In fact, they are not physical, physical objects. There are quite a few varieties of such assets.

In the modern understanding of intangible assets -these are assets that have a certain legal status, are identified by the time of their appearance and availability, belong to private property, they need legal protection, they have a certain manifestation or proof of their existence.

• with technological patents, technical documentation and various know-how;
• with marketing in the form of brand names, trademarks, logos, trademarks and brands;
• with information processing: computer patented software and rights to it, templates for various integrated circuits, automated databases;
• with engineering: patents for products, designs, schemes and drawings, various documentation;
• with creativity: literary, musical, staged works, as well as copyright and publishing rights to them;
• with goodwill (prestige and business reputation of the firm);
• with the clientele of the company: contracts, purchase orders and good relationships with customers;
• with personnel: hiring agreements, qualified and trained personnel, arrangements with trade unions;
• with contracts: licensing agreements, profitable and successful contracts with suppliers, franchise agreements;
• with land: the right to water and air space and the development of various minerals.

The intangible assets of the definition are alsosuch: assets that do not have a physical form, but are included in the assets of the balance of the enterprise and require gradual depreciation during the period of their use.

Valuation of intangible assetsis a rather complex process, which has its own specifics. This type of assessment is very different from the evaluation of material forms of ownership. It is quite difficult to determine how much the impact and profitability of intangible assets. These assets allow enterprises to receive additional profits, increase sales and reduce costs.

When selling intangible assets is not realizedthe object itself, and the right to use it. The basis for recording on the balance is the invoice issued to the buyer or a bill of lading (certificate of acceptance and transfer). If there is a sale of the intangible asset itself, its residual value relates to other expenses and revenues. Intangible assets are objects whose turnover from sale is subject to VAT.

Intangible assets in financial statementscease to be reflected in case of their retirement for reasons of gratuitous transfer, sale, etc. Losses or incomes that arise upon the termination of the recognition of assets are reflected in the relevant report.