How to explain intangible assets in English

In October 2004, the third question of the noun explanation of the real question of the self-study examination "Accounting for Business Enterprises" was conducted in the group self-study exam.

Intangible socks burn assets.

Stop the orange school to analyze the answer:Intangible assets refer to non-monetary long-term assets that are held by an enterprise for the purpose of producing goods, providing services, leasing to others, or for management purposes, and have no physical form.

In accounting standards, intangible assets are mainly defined from the perspective of accounting recognition, measurement and reporting. It is generally believed that the financial accounting report should provide information on the available resources of the various assets of the accounting entity, so it is necessary to separately value the specific asset of intangible assets. However, due to the great uncertainty surrounding the future benefits of intangible assets and the lack of a dynamic market, the viable measurement attributes should be historical costs or costs adjusted for general purchasing power changes.

This requires that there must be a transaction or event, and the cost of each intangible asset can be identified individually, so the individual intangible assets recognized separately in accounting must be identifiable. Goodwill can only be recognized when the business is transferred as a whole, i.e. when a transaction has occurred and the costs can be reliably measured. In this way, relational intangible assets, such as the combination of staff and the relationship with customers, which are explicitly mentioned in the international valuation standards, cannot be recognized separately as intangible assets in accounting.

From a prudent point of view, China limits intangible assets to the scope of long-term role in asset valuation standards, and the accounting standards limit intangible assets to long-term assets, which can be said to exclude relational intangible assets. Theoretically, the value of an asset lies in its future economic benefit, and the acquisition cost of a tangible asset can be considered as a current estimate of the present value of the future economic benefit inflow of the asset. Intangible assets, especially self-created intangible assets, are only recognized as acquisition costs because their acquisition expenses are long-term and difficult to determine, and only a small part of them are recognized as acquisition costs in accounting, so the acquisition costs are weakly related to their future economic benefits.

In accounting, intangible assets are measured at the cost of acquisition, and in many cases, the intangible assets are underestimated. Therefore, with the help of scientific intangible asset valuation, it is theoretically necessary to adjust the intangible assets recognized by accounting.

Intangible assets refer to identifiable non-monetary assets owned or controlled by an enterprise that do not have a physical form.

Refers to identifiable non-monetary assets owned or controlled by an enterprise that do not have a physical form.

Intangible assets refer to identifiable non-monetary assets that are owned or controlled by an enterprise and do not have a physical form.

Meaning of intangible assets.

Intangible assets usually refer to non-specific assets owned by a business, such as brand value, patents, trade secrets, intellectual property, software, technology, customer relationships, and reputation. These assets are not as easy to quantify as fixed assets and current assets, but they have a significant impact on the value and competitive advantage of a company.

Brand value. Brand value refers to the trust and loyalty that consumers perceive to the brand, which is one of the important intangible assets of an enterprise. Building a good brand reputation increases the market demand for a company's products or services, thereby increasing the value of the business.

Patents and Intellectual Property.

Patents and intellectual property rights enable enterprises to monopolize the right to use a technology or innovation for a specific period of time, which brings economic benefits and market competitive advantage to enterprises.

Trade secret. Trade secrets include confidential information, technology, and business strategy, among others, which are critical to a business's competitive advantage and long-term success.

Customer Relations. Good customer relationships are one of the most important factors in the success of a business, which enables companies to maintain a loyal customer base, improve customer retention, and increase sales and profits.

Summary. Intangible assets are an important part of a company's value, and they enable a business to continuously innovate and develop and have an advantage in the market competition. Businesses need to carefully evaluate and manage intangible assets to ensure they are maximized, their value protected, and they succeed in the marketplace.