What is an asset?


  • Essential characteristics for an asset are:
    • the resource must be controlled by the entity
    • the resource must be as a result of a past event
    • future economic benefits are expected to flow to the entity from the resource
  • To be recognised as an asset on the balance sheet, the future economic benefits expected to flow from the asset must:
    • Be probable and 
    • Be capable of being measured reliably
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