Intangible assets are defined as those non-monetary assets that cannot be seen, touched or physically measured and which are created through time and/or effort. There are two primary forms of intangibles - legal intangibles (such as trade secrets (e.g., customer lists), copyrights, patents, trademarks, and goodwill) and competitive intangibles (such as knowledge activities (know-how,knowledge), collaboration activities, leverage activities, and structural activities).

Those assets which cannot see,touch and feel are intangible assets. e.g.:goodwill,patents, trades marks,copy right.

Intangibles depreciate over time, in the same way that tangible assets get worn out. Nowadays, in recognition that many types of goodwill don't wear out, companies no longer automatically take charges against goodwill each reporting period. Instead, they must re-examine the value of goodwill each year. If the goodwill is worth as much as what it was originally paid for, the value is left alone. On the other hand, if an acquisition eventually turns out to be worth less than what management originally paid for it, the company will then reduce its value or write-off its value entirely.