Assets As An Element Of Financial Statements – FAQ | IFRS

Assets as an element of financial statements

Definition: An asset is a present economic resource controlled by the entity as a result of past events. Assets as an element of financial statements

An economic resource is a right that has the potential to produce economic benefits. Assets as an element of financial statements

Tangible assets are those that can be touched. Examples include: Assets as an element of financial statements

– Buildings, – Cash on deposit, – Cash on hand, – Certificates of deposit or CDs, – Commercial paper, – Corporate bonds, – Corporate stock, – Debentures held, – Equipment, – Federal agency securities, – Federal treasury notes, – Guaranteed investment accounts, – Inventory, – Land, – Loans to members of insurance trusts systems, – Loans receivables, – Marketable equity securities, – Marketable securities, – Money market funds, – Mortgages (receivable) held directly, – Mutual funds, – Notes receivables, – Repurchase agreements, – “Restricted” cash and investments, – Savings accounts, – Share of funds in governmental investment accounts or pools, – State and local government securities, – Time deposits and – Warrants (to purchase securities). Assets as an element of financial statements

Intangible assets are non-physical, meaning they cannot be touched. They have value because they represent an advantage to a business or organization. Examples include:

Accounts receivable, Blueprints, Bonds, Brand names, Brand recognition, Broadcast licenses, Buy-sell agreements, Chemical formulas, Computer programs, Computerized databases, Contracts, Cooperative agreements, Copyrights, Customer relationships, Designs & drawings, Distribution rights, Development rights, Distribution networks, Domain names, Drilling rights, Easements, Engineering drawings, Environmental rights, FCC licenses, Film libraries, Food flavorings & recipes, Franchise agreements, Goodwill, Historical documents, Joint ventures, Laboratory notebooks, Landing rights, Licenses, Loan portfolios, Location value, Management contracts, Manual databases, Manuscripts, Medical charts and records, Methodologies, Mineral rights, Musical compositions, Natural resources, Patents, Permits, Procedural manuals, Product designs, Property use rights, Proprietary technology, Royalty agreements, Schematics & diagrams, Securities portfolios, Security interests, Shareholder agreements, Solicitation rights, Supplier contracts, Technology sharing agreements, Title plants, Trademarks, Trade secrets, Trained & assembled workforce, Training manuals, Use rights – air, water, land.

This section discusses three aspects of these definitions:

  1. right,
  2. potential to produce economic benefits, and
  3. control.

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