Accounting Essay Example: Tangible Assets verses Intangible Assets

The term tangible asset is widely used in accounting. It refers to physical resources available at the disposal of an entity used for production or furtherance of business, which has economic value. These tangible assets may be either non-current assets such as land, plant etc., or current assets such as inventory and cash. Intangible assets refers to the economic resources owned or in the possession of an entity which are not visible or are not yet have economic value measurable in monetary terms, for instance, goodwill. Computer software as well possesses both values which are classified as either tangible or intangible.

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The tangible values of computer software include readability of the program code streams; this implies that the software is coded in a convection programming language that can be decoded with ease by other stakeholder in the software development system or the client for purposes of debugging or advancing. The software should be cost effectively, maintainable: is should be having provision for easy debugging, repair and advancing without discarding the initial program and starting from the scratch.

The software uses simple clear language such that it doesnt leave the user with a need of technical assistance. The software used the graphic control properly and effectively. The software has an appealing and easily understandable layout of it control which makes it authentic, noble and user friendly. The software should have optimal installing volume requirement and should have universal hardware models applicability which does limit it applicability to a given models of selected hardware requiring the end user further burden of acquiring the matching hardware. All the above tangible values of software add commercial/economic value to computer software.

The intangible values of computer software are the apparent virtual qualities of the program. They include the program meeting the needs of the user effectively; the user is satisfied with the features of the application matching his particular needs. The software gives many feedback reasonable enough to the end user, this gives the system a real time control and this reduces the instances of time wastage in the do overs. The software is cost effective and economically feasible to the end user given the task it is meant to hand and its optimal loading capacity. The software should be intelligent, such that it doesnt allow incomplete input to be processed and doesnt accept inappropriate input into the processing stage. The software should have had reasonable loading capacity equal or higher than its march in the software in existence or reasonable for the target task. The software should have the ability to handle different situations, it can be adjusted from the default to handle a foreseen yet deviated event from the normal course of business, this assures the user from stoppage of work or the cost of need of an auxiliary or complement software to hand such a foreseen yet rare event.

All the above values of the software are very essential to the programmer who is coding a program which makes his output a cut above the best and it gains overwhelming acceptance by the targeted end user. The software has a competing edge in a competitive market as well as reduction of the warranties cases and slow sales due to the poor function abilities and few feature of the software. Such a program of those values if easy to market and the programmer becomes famous with the client, to the best interest of both the client and the programmer.