Intangible non-produced assets (TALC 32)

A1A.300.

Intangible non-produced assets (TALC 32) are assets that are constructs of society evidenced by legal or accounting actions. Such assets entitle their owners to engage in certain specific activities or to produce certain specific goods or services and to exclude other units from doing so except with the permission of the owner. The owners of the assets may be able to earn monopoly profits by restricting the use of the assets to themselves. This category is further classified into:

• marketable operating leases (TALC 321);
• permits to use natural resources (TALC 322);
• permits to undertake specific activities (TALC 323);
• entitlements to future goods and services on an exclusive basis (TALC 324);
• goodwill and marketing assets (TALC 325); and
• intangible non-produced assets not elsewhere classified (TALC 329).

A1A.301.

Marketable operating leases (TALC 321) consists of third-party property rights relating to fixed produced assets. The lease confers economic benefits to the holder in excess of the fees payable, and the holder can realise these benefits legally and practically, through transferring them. For example, where a tenant of a building has a fixed rental but the building could fetch a higher rental in the absence of the lease. If, in these circumstances, the tenant is able both legally and practically to sublet the building, then the tenant has an asset of the type of a marketable operating lease.

A1A.302.

Permits to use natural resources (TALC 322) consists of third-party property rights relating to natural resources. For example, where an institutional unit holds a fishing quota and is able, both legally and practically, to sell this to another unit.

A1A.303.

Permits to undertake specific activities (TALC 323) consists of permits that are limited in number and so allow the holder to earn monopoly profits where the monopoly profits do not come from the use of an asset belonging to the permit-issuer and the permit holder is able both legally and practically to sell the permit to a third party.

Includes: Taxi licences, casino licences.

A1A.304.

Entitlement to future goods and services on an exclusive basis (TALC 324) consists of the case where one party which has contracted to purchase goods or services at a fixed price at a time in the future is able to transfer the obligation of the second party to the contract, to a third party.

Includes: Footballers’ contracts; a publisher’s exclusive right to publish new works by a named author; the right to issue recordings by named musicians.

A1A.305.

Goodwill and marketing assets (TALC 325) consists of goodwill and marketing assets. Goodwill is the excess that potential purchasers of an enterprise are often prepared to pay above the net value of the enterprise’s individually identified and valued assets and liabilities. It reflects the value of corporate structures and the value to the business of an assembled workforce and management, corporate culture, distribution networks and customer base. Goodwill cannot be separately identified and sold to another party. Marketing assets are items such as brand names, mastheads, trademarks, logos and domain names.

A1A.306.

Intangible non-produced assets not elsewhere classified (TALC 329) consists of intangible non-produced assets that cannot be classified to marketable operating leases (TALC 321), permits to use natural resources (TALC 322), permits to undertake specific activities (TALC 323), entitlements to future goods and services on an exclusive basis (TALC 324) or goodwill and marketing assets (TALC 325).