Intangible assets - are values that have a certain cost, but do not have a physical presence.In fact, they are not tangible, physical objects.There are many varieties of such assets.
in the modern sense of intangible assets - these assets, which have a certain legal status, are identified by the time of appearance and presence, are privately owned, are in need of legal protection, have some manifestation or proof of its existence.
Intangible assets - are objects that are associated with different elements of activity:
- technological patents, technical documentation, and a variety of know-how;
- marketing as brand names, trademarks, logos, trade marks and brands;
- with information processing: computer software and proprietary rights to it, templates for different integrated circuits, automated database;
- with engineering patents on products, designs, diagrams and drawings, various documents;
- with the works: literary, musical, staged works, as well as copyrights and publishing rights to them;
- from goodwill (prestige and goodwill of the company);
- company with clients: contracts, purchase orders, and good relationships with customers;
- with the staff: employment contracts, qualified and trained staff, an agreement with the unions;
- contracts: licensing agreements, profitable and successful contracts with suppliers, franchise agreements;
- with the land: the right to water and air space and the development of mineral resources.
Intangible assets have more determination and such: assets that have no physical form, but included in balance sheet assets and requires a gradual depreciation during the period of their use.
valuation of intangible assets is a complex process that has its own specifics.This kind of assessment is very different from the evaluation of the material forms of ownership.It is difficult sometimes to determine how much influence the profitability and intangible assets.These assets enable enterprises to generate more revenue, increase sales and reduce costs.
Upon the sale of intangible assets is realized not the object itself, and the right to use them.The reason for recording the balance is drawn by the customer or invoice (the act of reception and transmission).If there is a sale of an intangible asset, its residual value relates to other income and expenses.Intangible assets - are objects, the turnover from the sale of which is subject to VAT.
in the financial statements, intangible assets cease to be reflected in the case of retirement for reasons of donation, sale, and others. Losses or profits arising on derecognition of assets are reflected in the relevant reports.
