are economic resources. Anything tangible or intangible that iscapable of being owned or controlled to produce value and that is held to have positive economicvalue is considered an asset. Simply stated, assets represent ownership of value that can beconverted into cash (although cash itself is also considered an asset).
value of the assets owned by the firm. It is moneyand other valuables belonging to an individual or business.
Two major asset classes are tangibleassets and intangible assets. Tangible assets contain various subclasses, including current assetsand fixed assets.
Current assets include inventory, while fixed assets include such itemsas buildingsandequipment.
is a resource controlled by the entity as a result of pastevents and from which future economic benefits are expected toflow to the entityAsset characteristicsIt should be noted that - other than software companies and the like -employees are not considered as assets, like machinery is, eventhough they are capable of producing value.
The probable present benefit involves a capacity, singly or incombination with other assets, in the case of profit orientedenterprises, to contribute directly or indirectly to future netcashflows, and, in the case of not-for-profit organizations, to provide
The entity can control access to the benefit;
The transaction or event giving rise to the entity's right to, or control of, the benefit has already occurred.