Many companies that have valuable patents do not show a value for those patents in the asset section of the balance sheet.

Question

Quizplus · Accepted Answer

This is because patents are intangible assets, and accounting rules often require that internally generated intangible assets (like patents developed through a company's own research and development) are not capitalized on the balance sheet. Instead, the costs associated with creating the patents are typically expensed as incurred. Patents acquired from others can be capitalized, but their valuation might not reflect the current market value due to amortization or impairment.

Many Companies That Have Valuable Patents Do Not Show a Value