Invisible Assets

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Goodwill

    An account that can be found in the assets portion of a company's ...
  2. Alternative Asset

    Any non-traditional asset with potential economic value that ...
  3. Asset Valuation

    A method of assessing the worth of a company, real property, ...
  4. Intrinsic Value

    1. The actual value of a company or an asset based on an underlying ...
  5. Asset

    1. A resource with economic value that an individual, corporation ...
  6. Patent

    A government license that gives the holder exclusive rights to ...
RELATED FAQS
  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 >>
Related Articles
  1. Investing Basics

    Patents Are Assets, So Learn How To Value Them

    Innovation is the key to staying on top. Find out how companies protect their ideas and how to figure out how much they're worth.
  2. Investing Basics

    Achieving Optimal Asset Allocation

    Minimizing risk while maximizing return is any investor's prime goal. The right mix of securities is the key to achieving your optimal asset allocation.
  3. Options & Futures

    6 Asset Allocation Strategies That Work

    Your portfolio's asset mix is a key factor in whether it's profitable. Find out how to get this delicate balance right.
  4. Investing Basics

    5 Things To Know About Asset Allocation

    Overwhelmed by investment options? Learn how to create an asset allocation strategy that works for you.
  5. Personal Finance

    Protect Your Personal Assets

    A family limited partnership (FLP) can go a long way toward securing your family's property.
  6. Personal Finance

    Can You Count On Goodwill?

    Carefully examine goodwill and its sources before considering the value of your investment.
  7. Retirement

    Disclaiming Inherited Plan Assets

    There are some good reasons for choosing not to accept the funds, but be sure you follow the proper process.
  8. Insurance

    How To Insure Your Most Important Asset - Yourself

    Insuring your human capital is something often overlooked. Don't make the mistake of leaving your biggest asset unprotected.
  9. Markets

    Intangible Assets Provide Real Value To Stocks

    Intangible assets don't appear on balance sheets, but they're crucial to judging a company's value.
  10. Bonds & Fixed Income

    Asset Allocation In A Bond Portfolio

    An investor's fixed-income portfolio can easily beat the average bond fund. Learn how and why!

You May Also Like

Hot Definitions
  1. Fixed Cost

    A cost that does not change with an increase or decrease in the amount of goods or services produced. Fixed costs are expenses ...
  2. Subsidy

    A benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy ...
  3. Sunk Cost

    A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business ...
  4. Technical Skills

    1. The knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as ...
  5. Prepaid Expense

    A type of asset that arises on a balance sheet as a result of business making payments for goods and services to be received ...
  6. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
Trading Center