What are the conditions for asset recognition? What are the conditions for asset recognition

Recognition conditions for an asset: To recognize a resource as an asset, it must meet the definition of an asset and meet both of the following conditions:

1. The economic benefits related to the resource are likely to flow into the enterprise;

2. The cost or value of the resource can be reliably measured.

Assets refer to the resources formed by past transactions or events of an enterprise, owned or controlled by the enterprise, and expected to bring economic benefits to the enterprise.

Extended Information: Assets have the following characteristics:

1.Assets are expected to bring economic benefits to the business refers to the fact that the assets directly or indirectly result in capital or cash equivalents.

The potential to flow into the business. This potential can come from the daily production and operation activities of the enterprise, or it can be non-daily activities; The economic benefits can be in the form of cash or cash equivalents, or in the form of cash or cash equivalents that can be converted into cash or cash equivalents, or in the form of reduced cash or cash equivalents being flowed out. If a project is not expected to bring economic benefits to the enterprise, it cannot be recognized as an asset of the enterprise, and a project that has been recognized as an asset in the previous period cannot bring economic benefits to the enterprise again, and it cannot be recognized as an asset of the enterprise again.

2.Assets should be owned or controlled by the enterprise Assets as a resource, should be owned or controlled by the enterprise, specifically means that the enterprise has the ownership of a certain resource, or although it does not enjoy the ownership of a resource, the resource can be controlled by the enterprise. Ownership is usually the primary factor to be considered in determining whether an asset is present, but in some cases, although some assets are not owned by the enterprise, i.e. the enterprise does not enjoy its ownership, the control of the assets by the enterprise also indicates that the enterprise is able to derive economic benefits from the assets.

3.Assets are formed by past transactions or events of the enterprise Only past transactions or events can generate assets, and transactions or events that the enterprise expects to occur in the future do not form assets. Assets should be formed by past transactions or events of the enterprise, including purchase, production, construction or other transactions or events, only past transactions or events can generate assets, and transactions or events that the enterprise expects to occur in the future do not form assets.

For example, if an enterprise has the intention or plan to purchase a certain inventory, but the purchase has not yet occurred, it does not meet the definition of an asset and cannot be recognized as an inventory asset.

The asset recognition conditions and the original economic benefits of the asset may flow into the cost or value of the enterprise's assets, and the assets that can be reliably measured refer to the asset resources that are expected to be operated or controlled by the enterprise due to the past transactions or events of the enterprise, and will bring economic benefits to the enterprise.

Definition of assetsAssets refer to the resources formed by past transactions or events of the enterprise, owned or controlled by the enterprise, and expected to bring economic benefits to the enterprise.

Accounting Standards for Business Enterprises define assets as "resources formed by past transactions or events, owned or controlled by an enterprise, and expected to bring benefits to the enterprise." In general, assets can be recognized if they meet the definition of an asset and then meet the requirements that "the economic benefits related to the resource are likely to flow into the enterprise" and "the cost or value can be reliably measured".

The property management company is entrusted to provide services to the owners of the community, and at the same time, it also performs management functions, and to some extent, plays the role of prospective owners. Legally, the property office, the property committee's room, elevator room, stairwell, basement parking lot, ground public area, etc., do not belong to the assets of the property company, but the property company can control the resource, the cost can also be obtained, and almost 100% of the income is also attributed to the actual use of the property company, which meets the definition of assets and can be recognized as assets?

The above resources fully meet the definition and recognition conditions of assets, from the perspective of the property company, it seems that there is no problem with confirming assets, but it is not reasonable to say in the situation, reason, and law, so what is the problem?

Let's go back to the definition of an asset and break it down. As a normative document, the accounting standards for business enterprises cannot violate the superior law

Article 20 of the Accounting Law stipulates that financial accounting reports shall be prepared on the basis of audited accounting books and records and relevant materials, and shall comply with the provisions of this Law and the national unified accounting system on the preparation requirements, objects and deadlines for the preparation of financial and accounting reports; Where other laws and administrative regulations provide otherwise, follow those provisions. In conjunction with the above example, the term "other laws" here refers to Article 272 of the Civil Code.

Therefore, we should not simply understand the superficial form of the expansion of management authority in property service activities as "control". Understood in conjunction with the Accounting Law and specific standards, "control" is based on legal authorization or contractual agreement to legally obtain usufructuary rights and franchise use rights, such as the recognition of land use rights and concession rights in the intangible assets standard, and the recognition of financial leases in the original lease standard.

Asset recognition conditions: The economic benefits associated with the resource are likely to flow into the enterprise, and the cost or value of the asset can be reliably measured. Assets refer to the resources formed by past transactions or events of the enterprise, owned or controlled by the enterprise, and expected to bring economic benefits to the enterprise.

Resources that do not bring economic benefits cannot be used as assets and are the rights of enterprises.

The conditions for the recognition of assets are 1An asset is a resource formed by past transactions or events that must be owned or controlled by a business. 2.It is expected to bring economic benefits to the business. 3.The cost or value of a resource can be reliably measured.

Assets are characterized by the expectation of economic benefits to the business, owned and controlled by the business, and formed by past transactions or events of the business. The recognition conditions and characteristics of assets are relatively similar, and when an enterprise recognizes something as an asset, it must not only meet the recognition conditions of the asset but also meet the characteristics of the asset.

Assets can be divided into current and non-current assets.

Current assets refer to assets that can be realized or used by an enterprise within a business cycle of one year or more than one year, while non-current assets are assets that can be realized or used for more than one year

There are two, not five, conditions for asset recognition. To recognize a resource as an asset, it needs to meet the definition of an asset and be full at the same time.

The following two conditions are satisfied:

1. The economic benefits related to the resource are likely to flow into the enterprise;

2. The cost or value of the resource can be reliably measured.

Assets refer to those formed by past transactions or events of an enterprise, owned or controlled by the enterprise, and expected to bring economic benefits to the enterprise.

resources of interest. According to the definition of an asset, an asset has the following characteristics:

1) Assets should be resources owned or controlled by the enterprise;

2) the assets are expected to bring economic benefits to the enterprise;

3) Assets are formed by past transactions or events of the enterprise.

The conditions for the recognition of assets are as follows:

1. To recognize a resource as an asset, it needs to meet the definition of an asset and meet the following two conditions at the same time:

a) the economic benefits associated with the resource are likely to flow to the enterprise;

2) The cost or value of the resource can be reliably measured.

2. Complying with the definition of assets does not necessarily mean that it can be recognized as an asset, the characteristics of assets are different from the recognition conditions, accounting must not only recognize the account, but also recognize the amount, if the two lack any of them, they cannot be confirmed, so the definition of assets only means that they meet a condition for asset recognition, but the asset may not be measured in a reliable amount.

Assets have the following basic characteristics:

1) Assets are formed by past transactions or events of the business.

2) Assets are resources owned or controlled by the enterprise.

3) The assets are expected to bring economic benefits to the enterprise.

The conditions for the recognition of an asset are:

1. An asset is a resource formed by past transactions or events. The asset must be an actual asset, not an expected asset. The past transactions or events of the enterprise referred to here include purchase, production, construction or other transactions or events.

Transactions or events that are expected to occur in the future do not result in assets.

For example, if an enterprise forms a certain piece of equipment through purchase, self-construction, etc., it will form the assets of the enterprise; However, the equipment that the enterprise is expected to purchase at some point in the future cannot be used as an asset of the enterprise if the relevant transaction or event has not occurred.

2.The asset must be owned or controlled by the business. Owned or controlled by an enterprise means that the enterprise has ownership of an asset, or that the resource can be controlled by the enterprise even though it does not have ownership of an asset.

For example, fixed assets under financial lease should also be recognized as enterprise assets in accordance with the requirement that substance is more important than form.

3.The economic benefits of the capital deficit are expected to be brought to the enterprise. The expected economic benefit to the enterprise refers to the potential to directly or indirectly result in the flow of cash and cash equivalents into the enterprise. Assets must have exchange value and use value.

Resources that have no exchange value and use value and cannot bring future economic benefits to the enterprise cannot be recognized as the capital and capital of the enterprise. For example, pending property losses or defunct, damaged inventory that has been modified and cannot provide future economic benefits to the business should no longer appear as assets on the balance sheet.

The asset is recognized on the condition that the economic benefits associated with the asset are likely to flow into the enterprise; The cost of the asset can be reliably measured.

Assets refer to the resources that are owned or controlled by the enterprise and are expected to bring economic benefits to the enterprise as a result of past transactions or events. Any business or exchange value owned by any business, business or individual. Assets can be divided into current assets and non-current assets according to their liquidity (turnover and liquidity of assets).

Fixed assets refer to non-monetary assets held by enterprises for the purpose of producing products, providing labor services, leasing or operation and management, which have been used for more than 12 months and have reached a certain standard, including houses, buildings, old machinery, machinery, means of transportation and other equipment, appliances and tools related to production and business activities.