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Corporate Failure - High Intangible Assets

CCarol7y ago
Hello Under the warning signs for potential corporate failure it lists high intangible assets. I've been trying to understand why, could you explain it please? Thanks Carol
kengarrettkengarrettTutor7y ago#1
If there are assets in the SOFP like trade marks amd good will, the value of these assets is first difficult to establish and then value can disappear very quickly. The writeoffs can be substantial and lenders want tangible assets as security.
CCarol7y ago#2
Ah, now it makes sense. Thank you.
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