What are Tangible Assets?

Examples of Tangible Assets

Meaning:

The word tangible means touchable - it means that tangible things can be perceived by the sense of touch. However, today, in the financial or accounting parlance the term is used to cover all the assets that can be easily quantifiable and readily convertible into cash or other similar assets or touchable assets. Tangible assets includes virtually all kind of assets that can actually be touched as well some that may not actually be touched – say customer receivables or balance lying with banks but exclude items like brand, business goodwill, etc.

Examples:

1. Land
2. Buildings and other civil works
3. Plant and machinery
4. Motor vehicles, ships and aircraft
5. Inventory
6. Customer receivables
7. Cash and bank balances
8. Loans, advances and deposits

Exclusions:

1. Brand or brand value
2. Goodwill
3. Other such assets