Intangible Assets
1. What are intangible assets?
@Intangible assets are identifiable non-monetary assets without physical form.
@Their existence is recorded through legal documents.
@The company has control over these assets.
@They are expected to generate economic benefits in the future.
2. The company’s intangible assets include:
A. Patent – A proprietary right granted to the inventor or creator of an invention within a statutory period.
B. Goodwill – An intangible asset generated when a buyer acquires an existing business.
C. Copyright – A form of intellectual property that grants the owner exclusive rights to creative works for a limited time.
D.Trademark – A recognizable sign, symbol, or expression identifying a product, service, or individual or business entity associated with it.
i. Trademark (TM) – Indicates that a trademark is in the application process and does not have legal protection yet.
ii. Registered (R) – Indicates that a trademark has been registered and enjoys legal protection.
E. Franchise – A contractual agreement allowing the franchisee to use the franchisor’s name, trademark, proprietary technology, products, and operational expertise for a fee.
F. Brand – The identifying symbol, logo, slogan, or value proposition of a company’s products or services.
G. Customer Data – All personal, behavioral, and demographic information collected from a customer base.
H. Proprietary Software – A permission granted by the software publisher or other entity to allow certain rights to use, modify, share modifications, or share the software, restricting the user’s freedom to use the software.
| Common accounting issue: Research expenses cannot be capitalized. This is because research expenses occur at the beginning of a period, making it difficult to predict whether there will be economic benefits in the future.*Any expenses incurred during the research phase will be recognized as expenses and recorded in the income statement.* |
