fictitious assets vs intangible assets
Fictitious Assets vs. Intangible Assets: Key Differences
Nature of Existence:
Fictitious assets lack a tangible form and are more of accounting entries.
Intangible assets, although intangible, have a distinct and identifiable existence.
Economic Impact:
Fictitious assets don’t contribute directly to a company’s earnings or operational efficiency.
Intangible assets can significantly impact a company’s revenue generation and market standing.
Examples:
Fictitious assets include preliminary expenses and accumulated losses not written off.
Intangible assets encompass patents, trademarks, goodwill, and intellectual property.
Amortisation:
Fictitious assets are gradually amortised over time.
Intangible assets undergo amortisation, but the process may vary based on factors like the asset’s useful life and residual value.
Strategic Value:
