Invisible Assets

  

Categories: Accounting

Wonder Woman's plane. At least one of James Bond's cars. Your best friend when you were five years old. Invisible assets.

In addition, the term applies to something valuable a company owns that doesn't exist as a physical item. Also known as intangible assets, this category includes things like patents, intellectual property, brand awareness, trademarks, and goodwill.

These items can't be touched or seen. In that way, they differ from, say, a factory or a warehouse full of inventory. However, these invisible/intangible assets provide value to the company all the same. Thus, they are assets...which happen to be invisible.

Related or Semi-related Video

Finance: What are Fixed Assets, Tangible...32 Views

00:00

finance a la shmoop what are fixed assets and no they're not what people

00:08

gratefully have when they leave the proctologist office fixed assets are

00:13

fixed as in fixed in place hard items things you can kick in you know whiz on [man tried to pull sword out of stone]

00:19

general rules for fixed assets one they're not used up in that accounting

00:24

year like inventory isn't a fixed asset and two they're typically in physical

00:30

form like a contract or a patent is not a fixed asset and three they're listed [contract and patent docs]

00:36

as property plant and equipment on the balance sheet at least usually fixed

00:40

assets you have land and you have plants and you have computers the software on

00:45

them all fixed assets and these are tangible ones so then what are

00:50

intangible fixed assets well basically things that are not

00:54

touchable or physically you know they're not feel about those would be things

00:58

like well our shmoop logo our shmoop guides intellectual property the stuff [Shmoop website images]

01:03

you're watching right now and other copy written material all that kind of stuff

01:07

intangible that famous factory smelting plant we're always talking about here [something gets thrown into industrial smelting pot]

01:11

from up fixed tangible asset the hundred eighty eight acres of the legal pot

01:16

growing farm owned by Mary Jane industries fixed asset the secret recipe [Mary Jane in her pot farm]

01:21

owned by coke which names the ingredient beyond sugar in the fizzy water that

01:26

makes coke oh so great intangible fixed asset anyway these big fat fixed assets

01:31

carry heft and illiquidity like you can't just quickly sell a hundred eighty

01:36

eight acres of a pot farm in well get a whole lot of money for it same deal with [Mary Jane unhappy with her attempt to sell the farm]

01:40

the smelting factory or eight miles of styrofoam packing peanuts [shower of packing peanuts]

01:45

even if they do as our proctologist says give you you know more cushion for the

01:50

pushin don't eat those things [doctor gives man a shot]

Up Next

Finance: What are Hidden Assets?
2 Views

What are Hidden Assets? A hidden asset is an asset that doesn’t show up on a company’s balance sheet. Hidden assets can also be used in referen...

Find other enlightening terms in Shmoop Finance Genius Bar(f)