Intangible fixed assets
In general terms, fixed assets are business property intended for long-term use. Intangible fixed assets are assets that lack physical form like patents, concepts and intellectual property. Intangible fixed assets form much of Inter IKEA Group overall assets.
Most Inter IKEA Group intangible fixed assets are so-called proprietary rights for the IKEA trademarks, intellectual property and catalogue. Inter IKEA Group purchased these rights for EUR 11.8 billion. As a positive return is expected for a long period, these costs are spread over a period of 45 years, which started in 2012. This common practice, called amortisation, makes it easier to compare yearly income with expenses.