Intangible Asset

Definition

A non-physical asset with future economic value: purchased software licenses, patents, trademarks, acquired customer lists, capitalized development. Amortized over its economic life.

Worked Example

License purchase:

asset type:    intangible
cost:          $36,000
life:          36 months
monthly amortization: $1,000

Interpretation & Pitfalls

For internally built software, capitalization rules vary by jurisdiction and accounting standard — involve an accountant before capitalizing development payroll.

In TupicFinance

Intangibles are one of the three supported amortizable asset types.