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Knowing your intangible assets
Lau Wai Seang | 08 Dec 2017 00:30
Alipay, eBay, booking.com, traveloka, expedia, and airbnb are examples of companies with IAs – Bloomberg

Ever wonder why some businesses in the new economy command value in the millions or billions of dollars? We do not see these companies owning huge physical assets except for a platform to operate their businesses which are manned by a minimal number of people.

Much is known about real assets, which are assets that we can feel and touch, such as landed or stratified properties, plants and machineries, stocks and monetary assets. However, there is a group of lesser-known assets called intangible assets (IAs).

Alipay, eBay, booking.com, traveloka, expedia, and airbnb are examples of companies with IAs. As the name suggests, IAs are assets which have no physical presence. Due to this non-tangible existence, this asset group receives little recognition for its economic importance in this part of the world. These are assets of the new economy.