Assets are economic resources controlled by a company because of past events and capable of producing economic benefits. They include cash, receivables, inventory, property, equipment, and qualifying intangible rights, but the accounting value shown is not necessarily the amount the asset could sell for today.
Assets appear in the statement of financial position and show the resources available to a business. They are commonly separated into current assets expected to be realised in the operating cycle and non-current assets held for longer-term use.
An asset must satisfy recognition and measurement rules before it appears in the accounts. Read the figure together with liabilities, equity, depreciation, impairment, and the notes: a large asset total alone does not prove liquidity or business quality.
This page explains the shared concept. National legal effects may differ. Check official records before acting.
Current assets are a company's short-term resources - things it expects to use, sell, or turn into cash within one year, or within its normal…
Fixed assets are the long-term things a business uses to operate, like buildings, machinery, equipment, or software. They usually appear on the…
A balance sheet is a snapshot of what an entity owns and owes on a specific date. In plain English, it helps you see financial position: assets on…
Liabilities are present obligations of a company to transfer an economic resource because of past events. They include trade payables, tax balances…
Equity is the residual interest in a company's assets after deducting all liabilities. It represents the accounting claim attributable to owners…
Inventory comprises assets held for sale, being produced for sale, or consumed in production. Under IAS 2, it is generally measured at the lower of…
