Intangibles

Intangibles means an identifiable non-monetary production factor without physical substance that is utilised for manufacturing products or performing services, renting buildings to third parties and/or controlling and administering internal or external performance or value-added chains. Assets are resources

- is under the control of a company due to development or events in the past and
- that may be expected to generate economic benefits for the company.

Intangibles have to be identifiable. In other words, entrepreneurs have to be able to distinguish them from goodwill. What's more, entrepreneurs have to reliably operate on the likelihood that the company will accrue future economic benefits from their assets while reliably valuating the costs of acquiring or manufacturing the assets.

This spells out the issue of how companies can use reasonable and justifiable assumptions to assess the likelihood of future economic benefits and how those benefits can be valuated. It's self-evident that the factors going into this valuation have to include economic constraints and the type and useful life of the assets themselves.