Intangible

In accounting, intangible is defined as a non-physical asset that lacks physical substance but holds value for a business, such as patents, trademarks, or goodwill. These assets are crucial for a company’s competitive advantage and are typically recorded on the balance sheet under long-term assets. Intangibles are amortized over their useful life, reflecting their gradual consumption. Understanding intangibles is essential for accurate financial analysis and reporting.