Accounting
Intangible Assets
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Intangible assets are valuable resources that you cannot physically touch. They include patents, trademarks, copyrights, brand recognition, customer relationships, and goodwill. Despite being invisible, they can be worth billions.
For example, Apple's brand is estimated to be worth over $300 billion — that is an intangible asset. Coca-Cola's secret formula, Microsoft's software patents — all intangibles.
On the balance sheet, intangible assets are recorded at cost and may be amortized over their useful life. Goodwill (the premium paid in an acquisition) is tested annually for impairment rather than amortized.