Table of Contents
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.