Fictitious assets are a type of intangible asset that do not have a physical existence or any realizable value, but are reported as actual cash expenditure in the financial statements. They are expenses incurred in running a business that are categorized as assets in the balance sheet because they are expected to give back returns to the organization over an extended period. Fictitious assets have no resale value and cannot be recovered by the business. Examples of fictitious assets include preliminary expenses, loss on issue of debentures, and expenses incurred in promoting a business.

It is important to note that fictitious assets are different from intangible assets, which are identifiable non-monetary assets without physical substance, such as patents, copyrights, and trademarks. Intangible assets have either an identifiable or an indefinite useful life and are typically expensed according to their respective life expectancy.