Definition of tangible assets:

Tangible assets refer to those assets with physical form, including fixed assets and current assets. Such as inventories, external investments, monetary assets, accounts receivable, etc. Tangible assets have a narrow concept and a broad concept. Generally speaking, tangible assets are assets that have a certain physical form. Assets that exist in the form of specific material products include produced tangible assets and non-produced tangible assets.

Definition of intangible assets:

Intangible assets refer to identifiable non-monetary assets that have no physical form and are owned or controlled by an enterprise. Intangible assets can be divided into broad and narrow senses. Intangible assets in a broad sense include monetary funds, accounts receivable, financial assets, long-term equity investments, patent rights, trademark rights, etc., because they do not have physical entities, but are expressed as certain legal rights. or technology. However, in accounting, intangible assets are usually understood in a narrow sense, that is, patent rights, trademark rights, etc. are called intangible assets.

The difference between tangible assets and intangible assets:

The essential difference between tangible assets and intangible assets is that the value of tangible assets is created by its tangible nature; while the value of intangible assets is Value is created by its intangible nature. That is, it is the tactile, tangible, and visible elements of a tangible asset that give it value. The value of a tangible asset is derived from its material characteristics, and although its property rights are intangible, it is derived from its material characteristics. The value of intangible assets may come from certain rights such as licenses, mortgage rights, etc., or from the influence of some intangible factors, such as competitive advantages, uniqueness, etc. The value sources of these intangible assets are all intangible.

Intangible assets do not have a physical form, which is an obvious feature that distinguishes them from tangible assets. Tangible assets should have a physical form and be tactile and visible, such as plants, equipment, inventory, etc. that can be touched and seen. However, the supporting documents of intangible assets are also touchable and visible, such as patent certificates, franchise agreements, etc., which can also be touched and seen.

On the other hand, the value of tangible assets and intangible assets essentially comes from their property rights, and such property rights are intangible. From a formal point of view, the difference between tangible assets and intangible assets is not obvious. To distinguish between tangible assets and intangible assets, we should examine the essence.