Welcome back to our Today we are going to show intangible assets on the balance sheet with an example that can help you understand intangible assets in the balance sheet.

intangible assets definition

Intangible assets encompass non-physical assets lacking a tangible form, such as intellectual property, brand recognition, patents, trademarks, copyrights, goodwill, and more. 

intangible assets on the balance sheet

Intangible Assets In Balance Sheet with Example
Intangible Assets In Balance Sheet 

Now let's take a look at what are the intangible assets on the balance sheet:

  • Patents: Exclusive rights to inventions (e.g., pharmaceuticals, technology)
  • Trademarks: Distinctive symbols or words representing brands. 
  • Copyrights: Legal protection for original works.
  • Industrial designs: Protection for the ornamental or aesthetic aspects of a product.

2. Goodwill

3. Licenses and Franchises

4. Customer-Related 

  • Customer lists: Information about customers and their purchase history
  • Non-compete agreements: Contracts restricting employees from working for competitors.

5. Internal Developments:

  • Software: Developed or acquired computer programs and associated documentation
  • Research and development (R&D) costs
  • Brand recognition

6. Other:

  • Website domain names
  • Trade secrets
  • Goodwill arising from intangible assets

These are all intangible assets that are typically seen on the balance sheet.

Now let's move the balance sheet with intangible assets example:

Intangible Assets In Balance Sheet

AssetsLiabilities and Equity
Current Assets:Current Liabilities:
Cash200,000Accounts Payable80,000
Accounts Receivable150,000Short-term Debt50,000
Inventory120,000Accrued Expenses30,000
Total Current Assets470,000Total Current Liabilities160,000
Fixed Assets:Long-term Debt:
Property, Plant & Equipment600,000Long-term Loans200,000
Less: Accumulated Depreciation(100,000)
Net Fixed Assets500,000Total Long-term Debt200,000
Intangible Assets:
Intellectual Property70,000
Brand Names50,000
Customer Relationships60,000
Total Intangible Assets300,000
Total Assets1,270,000Total Liabilities360,000
Common Stock300,000
Retained Earnings610,000
Total Equity910,000
Total Liabilities and Equity1,270,000

There are five different types of intangible assets in this given balance sheet:

  • Goodwill: 80,000
  • Intellectual Property: 70,000
  • Brand Names: 50,000
  • Customer Relationships: 60,000
  • Patents: 40,000


In hope you guys understand our given example for intangible assets in the balance sheet. Please follow our blog for the Balance sheet example.