Intangible assets

Intangible assets are tradable, but not tangible and non-financial things and rights that directly serve the company's activities for more than one year.

Intangible assets are included in the in the balance sheet as fixed assets, but some types are expenditure-type items that do not pay for themselves within a business year. Therefore, based on the accounting regulations, under certain circumstances they can be declared as an asset, i.e. they can be activated.

So, we talk about intangible assets when we buy or produce some marketable asset, but it is not tangible (it is a tangible asset) and it is not a financial asset, and it serves the interests of the company for more than one year. 

Intangible assets include concessions, licences and similar rights, intellectual products, software, patents, know-how and goodwill. Intangible assets include the costs incurred in connection with the establishment and reorganization of the business, the costs incurred for experimental development and the value adjustment of intangible assets.

The cost value of the intangible asset is determined by the way in which the asset comes into the ownership of the enterprise. In the case of purchase, the purchase value, in the case of own production, the production cost, and in the case of acceptance as an apport, the value according to the founding deed specifies the cost value. The market value is the determining factor in the case of receipt without payment or as a gift and in case of excess inventory. In the case of acceptance or exchange against a claim, the value according to the contract counts. 

Intangible assets must be included in the in the balance sheet at book value. This can usually be calculated by subtracting the current amount of depreciation according to the annual plan from the cost. However, this can be deviated from if the book value is permanently and significantly higher than the market value, or if the given intangible asset has become redundant, damaged, destroyed or unusable. In such cases, you can take advantage of the possibility of depreciation beyond the plan.