Tangible assets can be feel , touch while intangible assets cant be feel and touch like patents ,trademark

Classification of Computer Software
Computer software is classified as a fixed intangible asset because it does not have a physical form but provides long-term value to a business. Here’s a detailed explanation:

Understanding Fixed Intangible Assets
- **Definition**: Fixed intangible assets are non-physical assets that a company owns and uses over an extended period, usually more than one year.
- **Examples**: This category includes patents, trademarks, copyrights, and software.

Characteristics of Computer Software
- **Non-Physical Nature**: Unlike tangible assets such as machinery or buildings, software cannot be touched or physically measured.
- **Long-term Use**: Software is typically used over several years, providing ongoing benefits to the organization, such as improved efficiency and productivity.

Valuation and Accounting Treatment
- **Capitalization**: When a company purchases software, it is generally capitalized on the balance sheet rather than expensed immediately. This means it is recorded as an asset that will provide future economic benefits.
- **Amortization**: Over time, the cost of the software is amortized, reflecting its consumption over its useful life. This aligns the expense recognition with the revenue generated from using the software.

Conclusion
In conclusion, computer software is classified as a fixed intangible asset due to its non-physical characteristics and its role in providing lasting value to a business. Recognizing software in this category helps organizations accurately represent their financial position and manage their resources effectively.