Difference Between Tangible Assets And Intangible Assets
The main dissimilarities or difference between tangible and intangible assets can be highlighted as follows:
1. Introduction
Tangible Assets: Types of assets with long-term physical existence and can be measured in monetary value.
Intangible Assets: Types of assets with no physical existence and cannot be measured in terms of money
2. Nature
Tangible Assets: They are physical in nature. It means tangible assets can be seen, touched, felt and identified.
Intangible assets: They are abstract in nature and lack physical form. It means they cannot be identified, touched and seen
3. Scrap Value
Tangible Assets: Yes. They have scrap value after their working life.
Intangible Assets: No. Their value become zero after the life
4. Convertible Into Cash
Tangible Assets: Yes
Intangible Assets: No
5. Decrease In Value
Tangible Assets: They are depreciated
Intangible Assets: They are amortized
6. Price
Tangible Assets: Lower price
Intangible Assets: higher price
7. Destruction
Tangible Assets: Disasters (earthquake, fire etc), accidents and carelessness can easily destroy tangible assets.
Intangible Assets: Very less chance of destruction
8. Used As Collateral
Tangible Assets: Yes. Banks and other financial institutions accept tangible assets as collateral
Intangible Assets: No. Not acceptable
Also Read:
Also Read:
9. Cost Determination
Tangible Assets: Total cost or value of these assets can be determined or measured
Intangible Assets: Total value of intangible assets cannot be measured
10 Examples
Tangible Assets: Plant, machinery, building, furniture, land etc. are some examples of tangible assets.
Intangible Assets: Brand, goodwill, image, trademark, software etc. are some examples of intangible assets.
Tangible Vs Intangible Assets (Comparison Chart)
I hope this post is helpful to understand the difference between tangible assets and intangible assets and to make comparison between them.
Basis For Difference
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Tangible Assets
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Intangible Assets
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Introduction
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Assets with physical existence
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Assets with no physical existence
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Nature
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Physical
|
Abstract
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Scrap Value
|
Yes
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No
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Convertible Into Cash
|
Yes
|
No
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Decrease In Value
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Depreciation
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Amortization
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Price
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Lower
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Higher
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Chance Of Destruction
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High
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Less
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Used As Collateral
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Yes
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No
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Measurement Of Value
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Possible
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Impossible
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Examples
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Plant, building, machinery, land etc.
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Brand, goodwill, trademark, image etc.
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I hope this post is helpful to understand the difference between tangible assets and intangible assets and to make comparison between them.
