Definition of intangible resources

Students and intangible assets  May 23, 2016 – 12:03 pm

Please note: While I specifically refer to the Australian equivalents of International Accounting Standards, paragraph references and details are equally applicable to the IAS counterpart. AASB 138 is equivalent to IAS 38.

Accounting students at university appear to have misconceptions about intangible assets. Whenever I bring up intangible assets in conversation, the first thing that springs to mind for the student is goodwill. This is probably reasonable considering that goodwill is used as a prime example of an intangible asset in almost all accounting courses. This creates an issue when intangibles are examined in greater detail. When referring to AASB 138 Intangible Assets (available here) it is clear that there are two situations in which an intangible asset can arise: through acquisition or internal generation. Whenever I ask the student about recognising an intangible asset in the financial statements, they would simplify and generalise by stating that acquired intangibles can be recognised while internally generated intangibles are precluded from recognition. This is incorrect. Therefore, with this post I hope to extend the student’s understanding of intangibles and perhaps make it easier to explain in the future.

Source: Accounting Academe

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The wealth we have today is backed by a lot of things, gold, silver, land, service, product, etc. And all these tangible and intangible assets make up the entire capital wealth of the US to be $58T. This is not liability nor debt, this is wealth.
Wealth is asset minus liability.
You don't have a clue how to calculate wealth or even know the definition of wealth. How do you expect me to logically debate you?

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