What are Intangible Assets?

Intangible assets are non-physical assets that have value but do not have a physical form, such as trademarks, copyrights, patents, and goodwill.

What is a current asset?

A current asset is an asset that will provide an economic benefit for or within one year.

Can intangible assets be current assets?

No, only tangible assets can be counted as current.

What are some examples of intangible assets?

Examples of intangible assets are trademarks, patents, copyrights, franchise licenses, and goodwill.

Are Intangible Assets Current Assets?

Written by True Tamplin, BSc, CEPF®

Reviewed by Subject Matter Experts

Updated on April 06, 2024

No, intangible assets are not considered current assets for accounting purposes as their economic benefit almost always extends beyond 1 year. Current assets are any assets that can be converted into cash within a period of one year.

This counts products that are sold for cash as well as resources that are consumed, used, or exhausted through regular business operations that are expected to provide a cash value return within a single year. Only tangible assets can be counted as current.

Intangible assets such as trademarks, copyrights, intellectual property, and goodwill are not able to be converted easily into cash within a year, even if they still provide a company with economic value.

Examples of intangible assets are:

Trademarks

Patents

Copyrights

Franchise License

Goodwill

Are Intangible Assets Current Assets? FAQs

About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.