intangible assets

Only one further new category of assets can still be found on the December 31,1979, Balance sheet . to illustrate that an asset need not be a tangible commodity,a price of equipment , or a sum of money , a patent has been introduced into picture . Suppose it is a patent on portfolio new chemical process, giving us exclusive production rights for 17 years . Such a patent is obviously worth money . Of course,as 5,10,12, and 16 years pass , the patent will be coming near to the end of its 17-year life and will be declining in value . therefore , some amortization formula will be applied to it much as if it were a truck .