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What are Intangible and Inventory Assets?

Intangible assets are assets that don’t have any physical existence. Brand recognition, goodwill, and Intellectual property such as trademarks, patents, copyrights are intangible assets. Intangible assets are opposite to tangible assets including inventory, equipment, vehicles, building, and land.


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Intangible assets are classified as definite or indefinite. The brand name of a company is an indefinite intangible asset as it remains with a company till it continues its operations. A definite intangible asset is a legal agreement for operating under the patent of another company without any plans to extend the agreement. This agreement has a restricted life and known as a definite asset.

Inventory is goods used in production or finished goods. It is known as a current asset on the balance sheet of a company. It acts as a buffer between production and order fulfilment. Inventory is an asset, whether tangible or intangible. It can be realized to generate revenue and has an exchange value. It is meant for sale.

Types of Intangible Assets

Intangible assets are of two types-identifiable and unidentifiable and these are discussed in our Inventory and Intangible Assets assignment help online. Identifiable intangible assets can be separated from other assets and they can be sold by a company. They are intellectual property including copyrights, patents, trade names, and trademarks. Software and computer-related assets are classified as identifiable intangible assets.

Unidentifiable intangible assets cannot be separated physically from the company. Goodwill is a common unidentifiable intangible asset. Internally generated goodwill is an expense, but an externally generated goodwill is when a company merges or acquires with another company and it is considered as an asset. It means when a company makes payment above its fair value to acquire it, it is called goodwill.

Branding and reputation is another unidentifiable asset. When a company sells its logos, trademark, it is difficult to separate branding and reputation from another company. Reputation and brand recognition can generate good returns for an organization in future.


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What are the Different Kinds of Inventory?

The different kinds of inventory are mentioned in our help for assignment on Inventory and Intangible Assets.

  • Raw Materials: Raw Materials are items processed for making a final product. Raw materials exist in the manufacturing industries In trading, there is no manufacturing e processing involved and thus there are no raw materials.
  • Work in Progress: When raw materials are sent for processing but not approved as the finished goods, it is called work in progress. It includes all items, which have been processed but have not been sent for sal.
  • Finished Goods: Finished goods are the final goods, which are ready for sale. These goods have gone through all production stages and quality checking.

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