The International Financial Reporting Standards

“An asset is a resource controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity.” (Myburgh, et al., 2013)

Increases or decreases in the value of assets owned by the corporation, including tangible assets such as land and buildings, and intangible assets such as goodwill.

Assets are things that a company owns that have value. This typically means they can either be sold or used by the company to make products or provide services that can be sold. Assets include physical property, such as plants, trucks, equipment and inventory. It also includes things that can’t be touched but nevertheless exist and have value, such as

Assets are to be recorded and valued based of the type of asset there are.

Classify each of the items as an asset, liability; revenue; or expense from the company's viewpoint. Also indicate the normal account balance of each item.

For instance, furniture, office equipment, vehicles, computers, business software, and machinery would all fall under equipment depreciation. These tangible items for your business are considered capital assets since they are used to make a profit.

* Financial Accounting – physical assets are recorded on financial statements as assets whereas employees’ salaries and other benefits such as pensions are recorded as expenses or liabilities. This is so because in order for an asset investment to appear on a balance sheet one of the criteria that it must meet is that the company must

In general, intangible assets are assets that are not physical in nature. Corporate intellectual property (items such as patents, trademarks, copyrights, business methodologies), goodwill and brand recognition are all common intangible assets in today's marketplace.

A company’s resources include two types: tangible and intangible. The former is asset that can be observed and counted, such as, office furniture, production equipment, computer, and warehouse, etc. Unlikely, the intangible resources are assets that are rooted deeply in the company’s history, accumulate over time, and are relatively difficult for competitors to learn and copy, such as brand, intellectual property and reputation, etc.

The intangible asset needs to be identifiable which means that the organization should be able to dispose of the asset without disposing off the whole of the business at the same time.

The last one is the Balance Sheet which tells a person the lists of assets he has, the list of

One of these is with regards to goodwill and intangible assets with identifiable useful lives.

1. The items which do not have any cost are ignored. Thus the knowledge and technical skill built inside the enterprise, a favorable location, brand name and reputation of the business as time goes would find no place in the assets of the business entity.

The balance sheet is produced typically at the end of each quarter or a year and is a statement of financial position for a company on that particular date. The balance sheet will include the assets (physical and financial items owned by the company), liabilities of that company (financial obligations), and equity (funds supplied by the owners and includes residual claim on the business). Essentially, assets are the liabilities added to the owner’s equity. The major assets show on the balance sheet are shown as liquid first which include current assets and fixed asset. Current assets include cash and anything that can be converted into cash within a year. This may include accounts receivable, cash, marketable securities, and cash on hand that can be deposited into banks. Fixed assets represent any physical facilities that may be used in distribution, storage, production, storage, and display of any products of a firm. These assets are not short term and should provide many years of service. Fixed assets are further divided into more categories such as plant/equipment and land. Intangible assets are also a consideration when looking at a balance sheet. A potential investor may look at a firm’s net assets and include non-tangible items such as loyal customers, a strong brand, and good products as a means for evaluating a business.

Assets can be hard goods such as computers and equipment, but can also be information and intellectual property.