Asset

From Simple English Wikipedia, the free encyclopedia

In business and accounting by asset are meant economic resources that can be controlled by somebody (or an entity) because in the past there were transactions or events that mean that future economic benefits may be obtained.

[edit] Asset characteristics

Assets have three essential characteristics:

  • They embody a future benefit that involves a capacity, singly or in combination with other assets, in the case of profit oriented enterprises, to contribute directly or indirectly to future net cash flows, and, in the case of not-for-profit organizations, to provide services;
  • The entity can control access to the benefit; and,
  • The transaction or event giving rise to the entity's right to, or control of, the benefit has already occurred.

[edit] External links