Intangible

Adjective

something that cannot be seen or touched but still exists, such as an idea or feeling.

Is Nontangible a word?

No, "nontangible" is not a word. The correct word would be "intangible". Intangible means something that cannot be seen or touched but still exists, such as an idea or feeling.

Synonyms

Synonyms for intangible include ethereal, immaterial, and unsubstantial.

Introduction

Intangible is a term applied to things that cannot be experienced by one or all of the senses, such as smell, touch, taste, sight, and hearing. It is often used to describe abstract concepts such as values and emotions. The concept of intangibility has had different meanings throughout history; ancient philosophers believed intangible concepts were reflections of a higher spiritual state.

In modern times, the meaning of intangibility has moved away from metaphysical considerations and instead emphasizes more practical definitions. Intangible assets are assets that do not exist in a physical form but can still be valued based on their usefulness or ability to generate income. Examples of this could include intellectual property rights, brand recognition, good wills, marketing rights and other similar factors. Intangible assets typically have an expected lifespan that can sometimes exceed physical assets due to their relative ease of being exploited in various ways. They also have greater flexibility than physical assets; they can quickly adjust to changing markets while tangible goods may remain stagnant in value as technology advances or consumer preferences shift.

Definition of Intangibles

Intangibles, also referred to as intellectual property, are a broad and ever-evolving concept that can be difficult to define. In its simplest terms, an intangible is an asset that does not have physical form or substance but still carries value. Such assets can take many different forms, including ideas, trademarks, copyrights, reputation and goodwill.

Standard definitions of intangibles generally focus on the fact that these assets cannot be seen, touched or physically observed. Instead, their existence is only recognized because of their growing importance in both business and society. Businesses rely on intangibles for aspects such as marketing and advertising campaigns or as a source of competitive advantage over rival firms. Meanwhile individuals also benefit from intangible attributes like relationships or education qualifications in their everyday lives.

The value of intangible assets is increasingly becoming accepted with numerous international standards and regulations being enacted to ensure they are properly recognized and accounted for in all business transactions. Intangibles are also now eligible for protection under many national laws all around the world depending on jurisdiction, with the intention of fostering creativity as well technological innovation within society through an appropriate level of recognition and protection.

Types of Intangibles

Intangible assets, often referred to as intellectual property, comprise a significant portion of a company’s value. Intangible assets can be divided into two general categories – legal intangibles and commercial intangibles.

Legal intangible assets are those which are properly protected by law including trademarks, patents and copyrights. In addition, any registered trade secrets can also fall under this category. These legal precautions protect the inventor or creator of the intangible asset from unauthorized use or imitation by competitors.

Commercial intangible assets include things such as trade names, customer lists, advertising campaigns and any other brand related items which are used in marketing but not specifically protected by existing law in the same way as trademarks and patents. These commercial intangibles rely on the reputation of the company to protect them from unauthorized use or misuse by competitors.

Intangible assets add value to a company by providing it with a competitive advantage which translates into greater customer loyalty and market share. To maximize their value over time many companies choose to periodically update their intangible assets for continued success in the global marketplace.

Examples of Intangibles

Examples of intangibles vary from organizations to fields and activities; however some common intangible assets are information, knowledge, ideas, branding, copyrights, customer relationships and trademarks.

Information: This refers to a set of data having a meaning or relevance. This can include but not limited to digital information such as designs for computer systems, medical records and web content.

Knowledge: This refers to the abilities or skills available in an individual or organization in order to apply their relevant knowledge base towards task completion.

Ideas: This refers to raw concepts which can be implemented by an individual with adequate training and know-how in order to monetize it further.

Branding: The term 'branding' describes the combined mental pictures of an organization generated through positive thoughts and public relations techniques in order to establish its reputation and reach the desired customer segment. It is more than just a logo but rather the beliefs underlying consumers' decisions when making purchases.

Copyrights: These are forms of protection granted by governments granting creators (authors) exclusive rights over their produced works including music, literature, films etcetera for monetary gain or personal benefit of education/cultural reasons.

Customer Relationships: This is an intangible asset that collectively assesses how well customers feel about certain organizations i.e., customer satisfaction regarding products/services availed from that specific enterprise which encourages them toward regularly purchasing from them again in future along with spreading goodwill via word-of-mouth marketing campaigns amongst other potential customers alike.

Trademarks: These are symbols exclusive used by organizations distinguishing them from competitors via differentiating their domain names; product names; brand logos etcetera against others in protecting brand identities & customer loyalty against potential infringements during commercial transactions alike involving goods/services provided/inducted by vendors/organizations into markets across geographies nationwide & worldwide respectively

Classification of Intangibles

Intangible assets are classified and grouped according to the characteristics they possess. Generally, they can be divided into two broad categories: Physical Intangibles, which are physical items that do not have a direct tangible form; and Intellectual Intangibles, which are intangible items that are of intellectual value to the person or company owning them.

Physical Intangibles may be further divided into four sub-categories: Improvement Assets, which consist of improvements made to existing or acquired tangible assets as a result of activities such as manufacturing or assembly; Natural Resources, which are non-renewable resources such as minerals and oil; Operational Assets, which include Assets acquired for the purpose of conducting operations; and Financial Instruments, which include mostly equities (shares), debt instruments (bonds) and derivatives (options).

Intellectual Intangible Assets may also be further divided into four sub-categories: Copyrights / Trademarks / Patents / Licenses / Franchises / Goodwill; Trade Secrets & Confidential Know How; Software Copyright & Applications; and Brands & Trade Names. These categorization can help in better understanding the objectivity associated to any assessment of its valuation. However, it is important to understand that different types of intangibles may predominate in different industries depending on the nature of the industry in question.

Accounting Treatment of Intangibles

In accounting, intangible assets are defined as long-term, non-physical assets that hold value and contribute to a company’s profitability. Examples of intangible assets include copyrights, trademarks, customer lists, franchises, goodwill and others. Intangible assets must be identified and recorded on the balance sheet differently than tangible (or physical) assets. Whereas tangible assets are recorded on an accrual basis (ie. depreciation or amortization taken over time) intangible assets are immediately capitalized upon acquisition and their value is amortized over the expected useful life of the asset.

The value of an intangible asset for accounting purposes is measured by its fair value at time of acquisition or purchase. This means that if a company pays more for an intangible asset than its fair market value, then the company must take a write-down in income to reflect this imbalance in cost versus fair market value. As reported on financial statements such as the balance sheet or income statement, all costs associated with acquiring intangibles (including amortization) must be included when calculating net income or net worth of a business entity.

Depreciation charges related to intangibles are calculated using either the straight line method or an accelerated depreciation approach and can be spread out over periods ranging from 3 to 40 years depending on what type of asset has been purchased, whether it carries any residual value at time of sale and how long it is expected to remain useful in generating revenue/profit for the business. Intangible assets should be monitored regularly as their values may decline due to events such as changes in technology or increased competition in markets where they are used; if this occurs then impairment charges may be necessary to reduce the carrying values reported for these items on financial statements accordingly.

Challenges of Valuing Intangibles

Intangible assets are non-physical assets that provide long-term financial value to their owners. Intangible assets often represent significant investments, with the cost of development and management being spread out over time – hence they require special consideration. Although intangible assets have the potential to generate considerable economic benefit, they also present unique challenges in terms of how they are valued and managed, especially given the complexities surrounding how these asset types can be traded, taxed, and amortized.

The main challenge posed by intangible assets is the identification of an appropriate value for them. This is especially difficult due to their lack of physicality – intangible assets often cannot be measured or observed directly in the same way as tangible assets can. Therefore their value must be determined by other means, for example through a series of discounted cash flows or benchmarking against comparable companies or industries.

When assessing the value of intangible assets it is also necessary to consider how this might change over time, both due to external influences such as inflation and changes in market conditions, and internally due to natural deterioration that may affect their use or usability. The life cycle of each asset also needs to be taken into account – some intangibles may only exist for a limited period before becoming obsolete (e.g software), while others may depreciate slowly but continue to generate value over time (e.g brands).

The ownership structure associated with intangibles can also add an extra layer of complexity when determining their valuation – when multiple parties have rights over different parts or uses it may be necessary to establish rights agreements before assigning a value. It is important therefore that organisations regularly review any agreements linked with their intangible assets in order ensure compliance with applicable taxes/regulations, whilst at the same time maximising returns from these valuable assets presented by them over time .

Conclusion

In conclusion, the concept of intangible is difficult to define because of its wide range of applications, from describing certain physical objects like air and light to describing a person's state of being or feelings. Overall, intangible can be broadly defined as something which cannot be perceived through physical means but is nevertheless present and real. Intangible things also often carry some sort of emotional or spiritual value which can contribute to a person's overall sense of well-being or mental and emotional health. Understanding what intangible things are and how they influence our lives can help us better appreciate the world around us and live in a more meaningful and fulfilling way.