An intangible asset is an asset that lacks physical substance, unlike physical assets such as machinery and buildings, and usually is very hard to value. It includes patents, copyrights, franchises, goodwill, trademarks, trade names. It also includes software and other intangible computer based assets.
An Intangible Asset Register is a schedule of all intangible assets that your businesses owns along with information about their descriptions, age, type and any valuation assessments that have been carried out.
Tracking and valuing your intangible assets provides the basis for you to better manage them and through better management, obtain full value out of them.
Options for better management include:
Under-utilized assets could be sold to someone who can extract more value from them Updated valuations and supporting documentation for your intangible assets will also provide banks with greater comfort over your business when lending you money.
Having an accurate value of Intangible Assets can greatly help any collaboration project with other organizations as it can form the basis of the value being contributed by each party.
These metrics will often use balance sheet numbers as inputs so having your intangible assets fully reflected in your balance sheet will make it easier for investors to perform this analysis accurately and position your business in the most favorable light.