The book value of an intangible asset is the value of that asset as recorded in a company’s accounting records. It represents the cost or value of acquiring the asset, adjusted for any depreciation or amortisation over time. Think of it like the amount of money you paid for something, minus any wear and tear or decrease in value over time. However, the book value of an intangible asset often does not reflect its full value because accounting rules require assets to be recorded at their historical cost or initial acquisition cost. Intangible assets, like patents or trade marks, can have significant value beyond their recorded cost. For example, a trade mark might have gained customer loyalty over the years, increasing its market value.