Intangibles are values without physical substance

Intangible assets are values that have a value but have no physical embodiment. In fact, they are not tangible, physical objects. There are many variants of such assets.

In the modern understanding of intangible assets-these are assets that have a specific legal status, identifitseerida at the time of appearance and presence, refer to private property, need legal protection, have a certain manifestation or proof of his existence.

Intangible assets are objects that are associated with various elements of activity:

• Technology patents, technical documentation, and various know-how;
• Marketing in the form of brand names, trademarks, logos, trademarks and brands;
• Information processing: computer proprietary software and rights therein, templates for different integrated circuits, automated databases;
• Engineering: patents for products, projects, diagrams and drawings, various documentation;
• Creative work: literary, musical, artistic works and the copyright;
• The goodwill (the prestige and business reputation of the company);
• With the clientele of the company: contracts, purchase orders and good relationships with clients;
• Staff: contracts of employment, qualified and trained personnel, the agreement with the trade unions;
• Contracts, license agreements, and profitable contracts with suppliers, and franchise agreements;
• With the land: rights on water and airspace and development of various minerals.

Intangible assets definition have is: assets that have no physical form, but included in the assets of the balance sheet and require a gradual depreciation during the period they are in use.

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Valuation of intangible assets is a rather complex process which has its own specifics. This kind of assessment differs from assessment of material forms of ownership. Quite difficult to determine how great the influence and profitability of intangible assets. These assets allow companies to obtain more profits, to increase sales and reduce costs.

The sale of intangible assets is not the object itself, but the rights to use them. The basis for recording the balance is issued to the buyer the invoice or invoice (act of transfer and acceptance). If there is a sale of the intangible asset, its residual value is charged to other costs and revenues. Intangible assets – facilities, turnover from the sale of which is subject to VAT.

In the financial statements intangible assets are no longer reflected in the case of disposal for reasons of gratuitous transfer, sale etc. the Losses or gains that arise upon derecognition of the assets reflected in the corresponding report.