Intangible Assets Categories
The Financial Accounting Standards Board (FASB), September 1999 Exposure Draft, Business Combinations and Intangible Assets, proposed six categories of intangible assets.
1. Customer-based or market-based assets.
Intangible assets that relate to customer structure or market factors of the business such as:
- Lists (advertising, customer, dealer, mailing, subscription, and so forth)
- Customer base
- Financial institution depositor or borrower relationships
- Customer routes
- Delivery system, distribution channels
- Customer service capability, product or service support
- Effective advertising programs
- Trademarked brand names
- Newspaper mastheads
- Presence in geographic locations or markets
- Value of insurance-in-force, insurance expirations
- Production backlog
- Concession stands
- Airport gates and slots
- Retail shelf space
- Files and records (credit, medical)
2. Contract-based assets.
Intangible assets that have a fixed or definite term:
- Agreements (consulting, income, licensing, manufacturing, royalty, standstill)
- Contracts (advertising, construction, consulting, customer, employment, insurance, maintenance, management, marketing, mortgage, presold, purchase, service, supply)
- Covenants not to compete
- Easements
- Leases (valuable or favorable terms)
- Permits (construction)
- Rights (broadcasting, development, gas allocation, landing, lease, mineral, mortgage servicing, reacquired franchise, servicing, timber cutting, use, water)
3. Technology-based assets.
Intangible assets that relate to innovations or technological advances within the business:
- Computer software and license, computer programs, information systems, program formats, Internet domain names and portals
- Secret formulas and processes, recipes
- Technical drawings, technical and procedural manuals, blueprints
- Databases, title plants
- Manufacturing processes, procedures, production line
- Research and development
- Technological know-how
4. Statutory-based assets.
Intangible assets with statutorily established useful lives:
- Patents
- Copyrights (manuscripts, literary works, musical compositions)
- Franchises (cable, radio, television)
- Trademarks, trade names
5. Workforce-based assets.
Intangible assets that relate to the value of the established employees or workforce of a company:
- Assembled workforce, trained staff
- Non-union status, strong labor relations, favorable wage rates
- Superior management or other key employees
- Technical expertise
- Ongoing training programs, recruiting programs
6. Corporate organizational and financial assets.
Intangible assets relating to the organizational structure of an entity:
- Savings value of escrow fund
- Favorable financial arrangements, outstanding credit rating
- Fundraising capabilities, access to capital markets
- Favorable government relations
See The Financial Accounting Standards Board (FASB), June 2001