When completing their RMAR for the first time, Brokers often ask: “What exactly is an Intangible Asset?”
An Intangible Asset is a type of asset that holds value for the business but does not have a physical form. Unlike buildings, equipment, or stock, you can’t touch or see it, yet it can contribute significantly to the overall worth of a company.
A common example is goodwill, which reflects the value of a company’s reputation, the expertise and skills of its staff, strong customer relationships, and other factors that make the business attractive to buyers. Other examples include copyrights, patents, trademarks, and intellectual property, all of which can be monetised or leveraged in business operations.
It’s important for Brokers to correctly identify and report intangible assets on their RMAR, as these figures can influence regulatory reporting and provide insight into the overall health and value of the business.
