Tangible vs Intangible Assets

Tangible Assets

Tangible Assets are those assets which have physical existence and can be seen and touched. Examples of  Tangible Assets are: 

• Land,
• Building,
• Furniture,
  Machinery,
• Plant and Equipment,
• Motor Vehicles,
• Computers,
• Office Equipment,
• Fixtures and Fitting,
• Cash,
• Inventory etc.

Intangible Assets

Intangible Assets are those assets which do not have a physical existence and can not be seen and touched, even they play an important role in the business. Examples of  Intangible Assets are: 

• Goodwill,
• Patent,
• Brands/Trademark,
• Copyrights,
• Mining Rights,
• Computer Software,
• Licenses and Franchise,
• Recipes,
• Designs etc.

Tangible vs Intangible Assets

• Tangible Assets are assets having physical existence, whereas Intangible Assets are assets having no physical existence.
• Tangible Assets can be fixed Assets or current Assets, While intangible assets usually fall in the category of fixed assets.
• Fixed Tangible Assets are depreciated, While intangible assets are amortized.
• Tangible Assets can be seen and touched, whereas intangible assets can not be seen and touched.
• Lenders accept tangible assets as security for providing loans, While Lenders do not accept intangible assets as security for providing loans.

Also read: Fictitious Assets