Invisible Assets


DEFINITION of 'Invisible Assets'

An item of value that is intangible and that cannot be seen, such as brand recognition and intellectual property including trademarks, copyrights or patents. Invisible assets are non-material assets that are shown in a company's balance sheet, and include research and development costs, concessions, patents, licenses, trademarks and goodwill. Also called intangible assets.

BREAKING DOWN 'Invisible Assets'

The value of invisible assets may be difficult to quantify; however, these assets can be important to the long-term success of a company (consider the Nike "swoosh" logo and brand recognition). An invisible (or intangible) asset is the opposite of a tangible asset, such as cash, a factory or real estate.

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  1. Should computer software be classified as an intangible asset or part of property, ...

    In accounting terms, an intangible asset is something of value that is not of physical nature. On the other hand, property, ... Read Full Answer >>
  2. Can working capital be depreciated?

    Working capital as current assets cannot be depreciated the way long-term, fixed assets are. In accounting, depreciation ... Read Full Answer >>
  3. Do working capital funds expire?

    While working capital funds do not expire, the working capital figure does change over time. This is because it is calculated ... Read Full Answer >>
  4. How much working capital does a small business need?

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  5. What does high working capital say about a company's financial prospects?

    If a company has high working capital, it has more than enough liquid funds to meet its short-term obligations. Working capital, ... Read Full Answer >>
  6. How can working capital affect a company's finances?

    Working capital, or total current assets minus total current liabilities, can affect a company's longer-term investment effectiveness ... Read Full Answer >>

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