Intangible Assets

Patented Stamp Showing Registered Patent Or TrademarksThere are 2 categories of intangible assets:

  • Indefinite useful life
  • Identifiable useful life


Intangible assets with indefinite useful life

The benefits of some intangible assets stretch so far into the future that it is hard to predict when it will expire.  When does the value of the name McDonalds end? Some intangible assets with indefinite useful lives are: franchises, trademarks and goodwill.


Intangible assets with identifiable useful life

Assets that may become obsolete or worthless have an identifiable useful life. For example patents and copyright. The term used to recognize expense for intangible assets is called amortization.

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