Briefly explain the concept and characteristics of an asset?

Assets refer to resources that are owned or controlled by an enterprise as a result of past transactions or events, and which are expected to bring economic benefits to the enterprise.

An asset should have the following basic characteristics:

1) Assets can directly or indirectly bring economic benefits to the enterprise. The so-called economic benefit refers to the cash or cash equivalents that flow directly or indirectly into the enterprise.

2) The asset is owned by the business, or is controlled by the business even if it is not owned by the business.

3) Assets are formed from past transactions or events. That is, the asset must be an actual asset, not an expected asset, the result of a transaction that has taken place in the past.

From the balance sheet, we can know: assets = liabilities + owners' equity, from which we can derive its composition! Therefore, the assets are not necessarily owned by the enterprise, but they can be used by the enterprise to serve the operation!

Assets are different from capital, which is owned by the company itself! In general, an enterprise has very little self-owned capital, and most of it is liquid assets represented by liabilities!

Assets are generally considered only to be elements of financial statements. However, it is an element of both the financial statements and the system of accounts. What is an asset?

An asset is nothing else, but an economic resource allocated by the market economy to an enterprise (i.e., resources are scarce). According to Coase's theory, the allocation of economic resources directly guided by the value mechanism does not complete the task of allocation, and if the resources are controlled by entrepreneurs, a certain market cost (transaction cost) will be saved.

Therefore, the concept of assets is related to scarce economic resources, and into the scope of assets, scarce economic resources must be allocated to specific enterprises, in which scarce resources are transformed into assets, and assets must be transformed into factors of production and directed by entrepreneurs according to a series of contracts.

The essence of an asset is an economic resource, and it should be reflected in the definition of an asset. A resource or asset has many characteristics, such as future services, exchange capacity, possible future economic benefits, etc. Its main features and future economic benefits are included in the definition.

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.

Features: 1 An asset is a resource formed by past transactions or events. The asset must be an actual asset, not an expected asset.

2 Assets must be owned or controlled by the business.

3 Assets are expected to bring economic benefits to the business.

Assets refer to resources that are formed by past transactions or events, owned or controlled by the enterprise, and are expected to bring economic benefits to the enterprise. Characteristics The asset is expected to bring economic benefits to the business. Assets are owned or controlled by the enterprise.

Assets are formed from past transactions or events. Recognition conditions The economic benefits associated with the resource are likely to flow into the enterprise. The cost or value of the asset can be reliably measured.

Definition: Assets are resources that are formed by past transactions or events of the enterprise, owned or controlled by the enterprise, and are expected to bring economic benefits to the enterprise. Resources that do not bring economic benefits to the destruction of the bush cannot be regarded as assets, but are the rights of enterprises.

Assets refer to the resources formed by the past transactions or events of the enterprise, owned or controlled by the enterprise, and expected to bring economic benefits to the enterprise. It is the material basis for enterprises to engage in production and business activities, and has the following characteristics:

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.

2 Assets 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 Assets are expected to bring economic benefits to the business. 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 assets of the enterprise.

Definition and characteristics of assets: Definition: Assets are resources that have been formed by past transactions or events and are owned or controlled by an enterprise that are expected to bring economic benefits to the enterprise.

According to this definition, the asset consumption chain has the following three characteristics:

1. The asset must be an economic resource formed by past transactions and owned or controlled by the enterprise. The ownership or control of the enterprise here means that the ownership and risk of the assets have entered the enterprise, including those that have been obtained, and the rights can be exercised in accordance with the law.

For example, if the receivable does not have a physical number, but it can be recovered according to the law, it should be regarded as an asset of the enterprise. The possible consequences of future, yet yet occurring events cannot be recognized as assets.

2. As a resource, assets must also have the ability to bring economic benefits to the enterprise. That is, as an economic resource, an asset can be combined with other assets independently or in combination with other assets, and has the ability to bring economic benefits to the enterprise in the coming period. In other words, if an economic resource does not provide economic benefits to the enterprise, it should not be recognized as an asset.

This is an important characteristic of an asset.

3. As an asset, its value should be measured in monetary terms. This is because accounting should be based on currency as the main measurement scale, and if an economic resource cannot be measured in currency, it is difficult to confirm and measure its value, and it cannot be recognized as an asset of the enterprise.

Assets are resources that are formed by past transactions or events, owned or controlled by the enterprise, and are expected to bring economic benefits to the enterprise. Characteristics: The premise is that the things that are produced have happened and the past; The nature is owned or controlled by the enterprise itself; The final economic benefits are realized in the future.

Asset is a multi-angle and multi-faceted concept, both in economics and other disciplines, and the appraiser should clarify the exact meaning of the asset as the object of evaluation. Assets in economics generally refer to economic resources owned or controlled by specific economic agents that can bring economic benefits to specific economic agents. There are also physical and intangible rights that are expressed as owned or controlled by specific economic agents and have intrinsic economic value.

Assets in accounting refer to resources that have been formed by past transactions or events and are owned or controlled by a business that are expected to bring economic benefits to the business. Assets in accounting not only have definitions but also recognition standards, and only those who meet the conditions of both definition and recognition standards can become accounting assets: and accounting assets mainly refer to the assets in the enterprise, which is an important part of the asset appraisal object, but the asset appraisal object or the assets in the asset appraisal are only defined and constrained, there is no recognition standard, and it is not completely limited to the assets in the enterprise.

The connotation of assets in asset appraisal or assets as the object of asset appraisal is closer to assets in economics, that is, economic resources owned or controlled by specific rights subjects and can bring future economic benefits to specific rights subjects. Extension, on the other hand, includes all physical and intangible rights that have intrinsic economic value, as well as market exchange value.

Assets have the following basic characteristics:

1) The assets must be owned or controlled by the economic agent.

2) Assets are resources that can bring economic benefits to economic agents, that is, resources that are expected to bring cash inflows to economic agents.

3) The asset must be measurable in monetary terms. In other words, the value of an asset can be measured in monetary terms, otherwise it cannot be recognized as an asset.