Intangible Assets

Intangible Assets:

Intangible assets are defined as those non-monetary assets that cannot be seen, touched or physically measured and which are created through time and/or effort. Some companies in the UK are becoming increasingly intangible asset rich and tangible asset poor as we move towards the so called “knowledge economy”. Intangible assets are often not recognised in company balance sheets and their inclusion will mean that performance indicators show a much more accurate position.

Understanding the true valuation of intangible assets will most certainly help the property industry appreciate the whole business environment, preparing property professionals to meet new challenges and markets for their services. The grouping of tangible and intangible assets under one banner is no longer an option. However many valuers may consider the ‘dark matter’ of intangibles to be outside the scope of their work. Their profession however must at least be able to properly differentiate between all such assets.

The accurate valuation of intangible assets such as reputation and databases is becoming increasingly important in calculating the true value of a business. When it comes to valuing intangible assets, such as people, goodwill, branding, customer loyalty and intellectual property, Britain lags behind the US and the emerging economies of the Far East and Asia.