Trademarks, copyrights and patents are:

Key Points

• Trademarks, copyrights, and patents are considered intangible assets because they represent non-physical assets that provide long-term value to a business.
• These assets are critical for protecting intellectual property and maintaining competitive advantage in the marketplace.
• Unlike tangible assets, intangible assets do not have a physical presence but are valuable for the economic benefits they bring to an entity.

Additional Information

• Intangible assets can include goodwill, brand recognition, and intellectual property such as patents, trademarks, and copyrights.
• These assets are often amortized over their useful life, reflecting their consumption or the period over which they provide economic benefits.
• Accounting standards require that intangible assets be reported on the balance sheet, providing a more comprehensive view of a company's financial position.