Goodwill equals the cost of purchase of the business by the purchasing company minus the value of net assets of the purchased company. It represents the business reputation of a company. Intangible assets are amortized. Amortization is the process of allocating an intangible asset’s cost over the course of its useful life. You can find an amortization expense by dividing an intangible asset’s cost by its useful life.
Franchise agreements too come under the purview of non tangible assets. Internet domain names too come under non tangible assets since they reap benefits. Similarly employment contracts and customer lists are an included in non tangible assets.
Usually you can record acquired non tangible assets on the balance sheet. This means the assets you obtained from another business. However you cannot include assets that your company internally generated.
Long term investments too are a type of long term asset. Their purpose is to invest in a scheme for a long duration of time. The chances of disposing it in near future are very less. And even if done early there is usually a heavy fine associated with it. Bonds, stocks, funds, insurance, pension schemes all come under long term investments. These investments are excellent to safeguard your future especially in old age. Insurance, stocks, pension schemes give an assurance of comfort post retirement.
Advance payments also come under long term assets. For example payment to supplier, or a total amount to the insurance to cover for 12 months all are long term assets. Prepaid advertising, prepaid rent and prepaid advertising all are an integral part of long term assets.
Considering the various types of long term assets it’s pretty clear that the investment field is quite big. There is something for everybody to invest it.