Measuring Intangible Assets - Apple, Inc Essay Example | Topics and Well Written Essays - 1000 words

Measuring intangible Assets - Apple, Inc - Essay ExampleTangible assets are fixed assets, which have physical substance and are held for using up in the production or supply of goods and services such as lands, buildings, plants, and equipment. An intangible asset is an recognisable non-monitory asset without physical substance (Weetman 2010). Examples of intangible assets are trademarks. This essay will examine patients and brand call more thoroughly. One of the most challenging principles of accounting is the identification of intangible assets, such as trademarks and patents, and a companys reputation in its financial statements and balance sheet. In addition, these assets are considered non-mentionable or in another sense un recognize in the balance sheet due to the failure of the rule of recognition in measuring the cost of the asset. The conventional argument is that the company gains nothing from the intangible asset, such as reputation etc. However. intangible assets can some of the largest assets a company acquires. They are also hotshot(a) of the major factors in generating future profits. This essay investigates the value and the importance of intangible assets for Apple Inc. After conducting seek and examining its annual report Apple Inc. held considerable interest for me. Apple Inc is considered the most valuable company in the world with a market capitalization of $346 billion (James 2011). One considers whether the worlds number one company has recognized their reputation in the balance sheet and whether the confidence of their consumers over the years has been recognized in the companys financial division. After examining the companys annual report I could locate this asset on the companys balance sheet. Apples brand is valued at $153 Billion (Trademark a name 2011) this is almost half of its market capitalization surface and is recognized as unmeasurable intangible asset of its trademark, which includes its reputation.