Intangible Asset Valuation Valuing Customer Relationships

What are Intangible Assets?

An intangible asset is an identifiable non-monetary asset without physical substance. Some examples of intangible assets are Trademark, Brandname, Software, Technology, Customer Relationships, and Goodwill.

To recognize an intangible asset, the following three criteria need to be met:

1. Identifiable

An intangible asset must be identifiable. Identifiable means the asset should either be separable or arise out of a contract (for example, franchise rights) or arising out of law (for example, copyright), whereas goodwill is not separable.

1. Control

An intangible asset must be controlled by a particular entity.

1. Future Economic Benefits