Intangible Assets in Balance Sheet

Intangible assets are recorded under the sub-head "Fixed Assets" in a balance sheet. These assets lack physical substance and are non-monetary assets that provide long-term benefits to the company.

Characteristics of Intangible Assets:
- Intangible assets are non-physical assets such as patents, trademarks, copyrights, goodwill, and intellectual property.
- They are long-term assets that contribute to the company's value over time.
- Unlike tangible assets, intangible assets do not have a physical form and cannot be touched or seen.

Importance of Recording Intangible Assets:
- Intangible assets are valuable to a company as they often represent its competitive advantage and market position.
- Properly recording intangible assets on the balance sheet ensures that investors and stakeholders are aware of the company's full asset base and value.

Sub-Head under which Intangible Assets are Recorded:
- In the balance sheet, intangible assets are categorized under the sub-head "Fixed Assets" along with tangible assets such as property, plant, and equipment.
- This classification helps to differentiate between the different types of assets owned by the company and provides a clear picture of its overall asset base.

In conclusion, intangible assets play a significant role in a company's balance sheet as they represent valuable long-term assets that contribute to its competitive advantage and overall value. By recording intangible assets under the sub-head "Fixed Assets," companies can provide transparency and clarity regarding their asset base to stakeholders and investors.