What is an example of an intangible asset?

An example of an intangible asset is goodwill. Goodwill represents the value of a business's brand, customer relationships, employee relations, and other factors that contribute to the company's overall value beyond its physical assets and liabilities. Intangible assets are non-physical and cannot be touched or seen, which distinguishes them from tangible assets like land, buildings, and vehicles, all of which have a physical existence and can be valued based on their physical characteristics and market conditions. Goodwill often arises when a company acquires another company for more than the fair value of its identifiable tangible and intangible assets, reflecting the expected future economic benefits that are not directly attributable to any single identifiable asset. Thus, goodwill is crucial in accounting as it signifies the premium a company pays for the strength of its reputation and customer loyalty.