Explain The Difference Between Tangible And Intangible Fixed Assets?


9 Answers

Tony Fyler Profile
Tony Fyler answered
There are clear boundaries between tangible and intangible fixed assets. Whenever you have profit which you have put in your business bank account, or once you’ve placed the last payment on your company’s premises, these are all tangible fixed assets that have a financial value, offering a safety net if something goes wrong. Unfortunately, not all of the assets that a company has can be bought and clearly defined. For example, intangible fixed assets will include the patent that a manufacturer may have to include an innovative feature in their goods and services. This protection ensures that their competitive advantage can’t be emulated too easily by other businesses.

Further examples of intangible fixed assets may include the franchise that an entrepreneur may have of a business model, or the trademark which has been used to protect a brand name. If you’re looking for a clear-cut definition, always remember that intangible assets aren’t something that can be touched.

Finally, tangible assets won’t always just be the money that you have sitting in your bank account. You need to remember that the fleet of cars that you may have in your company will also be highly valuable, adding to the tangible assets of your business. The computers that all of your staff have at their desks, office furnishings, the telephone network and other pieces of technology that are integral to the production of your goods and services will also be tangible assets. For more information on valuing a business accurately, and on differentiating between these two types of assets, talking to an accountant or a financial advisor is a good place to start.
Suhail Ajmal Profile
Suhail Ajmal answered
Tangible assets are defined as those monetary assets that can seen touched or physically measured. For example a computer is a tangible asset

Intangible assets are the assets which can not be seen, touched or physically touched or measured. There are two types of intangible assets, 1-legal intangibles (company list ) 2-competitive intangibles (knowledge activities) etc
Anonymous Profile
Anonymous answered
Is food served at a restaurant tangible asset?
Saurav Mandal Profile
Saurav Mandal answered
Tangible assets are those assets which can be seen,felt or touched.
Intangible assets are those assets which cannot be seen,felt or touched.
Anonymous Profile
Anonymous answered
Basically tangible are physical non monetary assets which can be touched while intangible aren't physical for example, a building would be tangible while knowledge, know how would be intangible
Anonymous Profile
Anonymous answered
Tangible products are those we can feel the product and we can touch and measure the product.. Ex.Land, computer, soap etc..

Intangible products are those we can't see and touch products..
Ex. Company goodwill, shares, phone recharge etc...
Anonymous Profile
Anonymous answered
Is tangible is expense or expenditure?
Steve Theis Profile
Steve Theis answered
A tangible asset is one you can see or touch, like a car or computer; intangible is like a stock certificate or land title, where it represents an asset.
thanked the writer.
Anonymous commented
What is the difference between tangible and intangible assets? Give an example of each.

Tangible assets are assets that have physical form (a definite size and shape). Examples of tangible assets are land, buildings and different types of equipment (computers, delivery truck, office furniture and others). Intangible assets are rights that result from ownership of long-lived assets and do not have physical form. Examples of intangible assets are patents, goodwill, trade names, franchises and others.
Accounting for tangible and intangible assets is different. The process of depreciation is used to match the cost of tangible assets to its useful life (except land, because land is not a depreciable asset). The process of amortization is used to allocate the cost of intangibles (except intangible assets with indefinite lives, because it should not be amortized).
Tangible and intangible assets have different presentation on the Balance Sheet. Tangible assets are usually shown under “Property, plant, and equipment” or “Tangible assets”. Intangible assets are shown under “Intangible assets”. Intangibles do not usually use a contra asset account like the contra asset account Accumulated Depreciation used for tangible assets. Instead, companies record amortization of intangibles as a direct decrease (credit) to the asset account.
Goodwill is a very important intangible asset, and management of any company should examine it more often than any other asset to keep it in a proper condition and to avoid any losts.

Anonymous Profile
Anonymous answered
Very simply, the tangible assets of a company include physical assets while intangible include IPRs, goodwill, trade secrets etc.

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