Intangible asset
AccountingA non-physical asset such as a brand, patent, licence or software.
In plain terms
Amortised over a useful life, unlike goodwill, and sometimes saleable on its own.
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Glossary
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
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Amortisation
AccountingSpreading the cost of an intangible asset across its useful life.
In plain terms
The intangible equivalent of depreciation. Goodwill is the exception — it is not amortised.
Tangible book value
AccountingBook value with goodwill and intangible assets removed.
In plain terms
The conservative floor. Goodwill is the premium paid in past acquisitions, and it goes if those disappoint.