Why are Intangible Assets Shown In The Balance Sheet
Because, I ntangible Assets such us Goodwill , Patents, Licensing etc., provide economic benefits for more than one year, so these are reported on the B alance Sheet Under the Section of N on Current Assets . However, the IAS requires from the company not to disclose internally generated intangible assets or Assets which is created by a company such a good brand’s name of a company which developed it over time as we can not assign a fair market value to it. So, only acquired intangible assets are shown on the balance sheet as these are acquired or purchased from other businesses either through a business combination such as Purchase Price Allocation (PPA) or just purchased of any asset through a settlement.