Final answer:
Intangible assets are typically reported as non-current assets in the balance sheet, not current assets. Examples of intangible assets include patents, trademarks, and software. Reporting them as non-current assets provides a clearer picture of a company's long-term economic position.
Step-by-step explanation:
Intangible assets are typically reported in the balance sheet as non-current assets, rather than as current assets. Current assets are assets that are expected to be converted into cash or used up within one year or one operating cycle, while non-current assets are those that are expected to be held for more than one year or operating cycle.
Examples of intangible assets include patents, copyrights, trademarks, brand names, customer lists, and software. These assets have no physical substance but possess value and contribute to the future earnings and competitive advantage of a company.
Reporting intangible assets as non-current assets provides a clearer picture of a company's long-term economic position and helps in assessing its ability to generate future cash flows.