difference between intangible asset and fictitious asset

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priyanka gupta

priyanka gupta (Querist)
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21 February 2011 can anybody please tell me the difference between intangible and fictitious assets?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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21 February 2011 INTANGIBLE ASSET is an asset that is not physical in nature. Examples are things like copyrights, patents, intellectual property, or goodwill. An intangible asset is the opposite of tangible asset.

FICTITIOUS ASSET is debit balance includes on balance sheets as assets that do not conform to the definition of an asset. Intentional includes of assets known to be fictitious assets may be ruled as fraud.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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21 February 2011 Very often these two terms are considered identical but there is significant difference between these two terms. Intangible assets refer to those fixed assets that have no physical status at all viz, goodwill, patentright,copyright etc . The Intangible assets are written off after a specified period Fictitious assets also have no physical existence but they only include the assets having the nature of deffered revenue expenditures viz, deffered advertisement expenses, discount on issue of shares or debentures. These are the assets out of which benefit or profit for more than one accounting is availed. The main reason for confusion is that both have no physical status but the discussions above are big enough for all to understand the difference between the two terms.

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