Intangible assets are non-physical assets that have a value to a company but cannot be touched or seen. They are long-term assets that are not easily converted into cash and are typically held by a company for a long period of time. Examples of intangible assets include patents, trademarks, copyrights, and customer relationships. Intangible assets are important for a company because they can provide economic benefits and competitive advantages. For example, a patent can protect a company's technology from being copied by competitors, while a strong customer relationship can generate repeat business and boost the company's revenue. Intangible assets are shown on a company's balance sheet along with the company's other assets, such as property, plant, and equipment. They are recorded at their historical cost, which is the amount that the company paid to acquire them. Over time, intangible assets may become impaired, which means that their value has decreased due to factors such as obsolescence or market conditions. In this case, the company would need to write down the value of the intangible asset on its balance sheet.
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