Intangible assets are assets that do not have a physical form but still provide value. Examples of intangible assets include patents, copyrights, trademarks, goodwill, and intellectual property. These assets are in contrast to tangible assets, which have physical forms and can be held.
Intangible assets are usually difficult to value because they lack physical substance and are subject to market failures of non-rivalry and non-excludability. However, they can be very valuable for the owner and critical to their long-term success.
The International Accounting Standards Board defines an intangible asset as "an identifiable non-monetary asset without physical substance". An intangible asset must be identifiable when it is separable, or when it arises from contractual or other legal rights.
Intangible assets can be created or acquired by businesses, and there are several ways to value them. An intangible asset with a finite useful life is amortized and is subject to impairment testing.
