Definition: An intangible asset is an asset that is not physical in nature. Goodwill, brand recognition and intellectual property, such as patents, trademarks, and copyrights, are all intangible assets. Intangible assets exist in opposition to tangible assets, which include land, vehicles, equipment, and inventory.

In Plain English: An intangible asset is an asset that you cant touch, such as a patent, brand, trademark, or copyright.

Example: Your shoe factory has a patent valued at $10k and copyrights adding up to $2k. In total you have $12k in intangible assets.

Intangible assets are another value addition to your company, which is important when creating your balance sheet and assigning value to your company.