Other Assets

Tangible Assets

Tangible assets refer to real-world assets with physical form, whose value is based on measurable and touchable physical entities. These typically include real estate, machinery and equipment, and inventory. Such assets have strong physical presence and identifiability, usually possess a long useful life, and their value is amortized over time through depreciation.

Intangible Assets

Intangible assets are non-monetary long-term assets without physical substance that can generate future economic benefits for an enterprise. They mainly include patents, trademarks, copyrights, franchise rights, software, customer relationships, and brand value. Although intangible, these assets generally have legally recognized ownership or widely accepted economic value, and their valuation and amortization must comply with relevant accounting standards.

Dimension	Financial Assets	Tangible Assets	Intangible Assets
Physical Presence	No physical form; value from contracts	Have physical form	No physical form
Recognition & Measurement	Measured by cash flows or market price	Valued by market or replacement cost	Valued by future income or models
Depreciation	No depreciation; value adjusted via fair value	Depreciated over useful life	Amortized or not (e.g., goodwill)
Useful Life	Varies; bonds mature, equities indefinite	Finite and predictable	Finite or indefinite
Presentation in Financials	Shown under financial instruments	Recorded as fixed or inventory assets	Shown under intangible assets
Primary Risks	Credit risk, market volatility	Obsolescence, depreciation	Legal, market, valuation risks
Collateral & Financing Use	Widely used in financing	Common collateral	Pledged if legally valued
Value Source	Income, appreciation, interest/dividends	Utility, resale value	Legal rights, tech, brand
Representative Examples	Stocks, bonds, receivables	Real estate, machinery, inventory	Patents, trademarks, data