How do you classify assets, liabilities and equity?

• Assets are classified according to their nature or function
• Classifications can reflect
• Liquidity
• Marketability
• Physical characteristics
• Expected timing of future economic benefits
• Purpose 
• Liabilities and equity are classified according to their nature
• Classifications may be based on:
• Liquidity
• Level of security of guarantee
• Expected timing of the future sacrifice
• Source
• Conditions attached to the liabilities

Asset Classes include: 

• Cash and cash equivalents
• Trade receivables
• Inventories
• Non-current assets held for sale
• Investments accounted for using equity method
• Financial assets
• Property, plant and equipment
• Deferred tax assets
• Agricultural assets
• Intangible assets
• Goodwill

Liabilities Classes include:

• Trade and other payables
• Borrowings
• Tax liabilities
• Provisions
• Financial liabilities
• Secured debts

Equity Classes Include:

• Share capital
• Paid-up share capital, contributed capital
• Retained earnings
• Reserves
• Minority interests of controlled entities

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