Intangible asset
Contents
Definition
Intangible asset is A non-physical asset of an organization
Source: Planning and Execution of Knowledge Management Assist Missions for Nuclear Organizations
Summary
Description
International Accounting Standards Board standard 38 (IAS 38) defines intangible asset as non-monetary asset which does not have a clear physical substance but can still be identified [1]. Intangible assets do not define organization's current market value in the same way as tangible assets. However, intangible assets can be critical to organization's long-term success or failure and define its future value. Organisations where knowledge and human resources define the its success are examples of cases where intangible assets are critical.
As depicted in Fig 1, intangible assets include human and knowledge assets. In addition, the reputation of the organization, its intellectual property, copyrights, patents, business processes, culture and trade marks are part of its intangible assets.
Human asset
Knowledge asset
Intellectual property
Business processes
Culture
Management of intangible assets
Intangible assets are managed as part of an organisation's asset management. In addition, International Accounting Standards Board standard 38 (IAS 38) outlines the accounting requirements for intangible assets [1].
Management areas involved with intangible assets include
References
[1] http://www.ifrs.org/The-organisation/Pages/IFRS-Foundation-and-the-IASB.aspx
