Learn in the textbookClassification of Assets and Liabilities
DefinitionIntangible assets (無形資産) have no physical form but are used over a long period to generate revenue, and appear on the balance sheet within non-current assets as intangible fixed assets (無形固定資産).
ExplanationThey include legal rights such as patents and trademarks, software, and goodwill (のれん), the amount paid above the target's net assets when acquiring a company. Most are recorded as assets and then amortized over several years.
AnalogyProperty you cannot hold in your hand, like the rights to an invention or business software, that you pay for and then use for years to earn money.