Intangible Assets - Intangible Assets Intangible assets are...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Intangible Assets Intangible assets are rights, privileges, and competitive advantages that result from ownership of long-lived assets that do not possess physical substance. Many companies' most valuable assets are intangible. Some widely known intangibles are Microsoft's patents, McDonalds's franchises, the trade name iPod, and Nike's trademark “swoosh.” Analysts estimated that in the early 1980s the market value of intangible assets to total assets was close to 40%. By 2000, the percentage was over 80%— quite a difference. What has happened is that research and development (e.g., hi-tech and bio-tech) has grown substantially. At the same time, many companies (e.g., Nike and Gatorade) have developed brand power which enables them to maintain their market position. As you will learn in this section, financial statements do report numerous intangibles. Yet, many other financially significant intangibles are not reported. To give an example, according to its 2007 financial statements, Google had total stockholders' equity of $22.7 billion. But its
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern