Asset
An asset is a present economic resource controlled by the entity as a result of past events. The resource is a right with the potential to produce economic benefits, such as a right to receive cash or use equipment. Control, rather than legal ownership alone, is central. Whether an item is recognised and how it is measured depend on the applicable accounting requirements.
Worked example
A credit sale creates a contractual right to collect cash: the business recognises a trade receivable as an asset.
Common mistake
An item need not be physical to be an asset, and an expected future purchase is not already an asset.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | F1 | Direct | July 2027–August 2028 |
| ACCA | F2 | Direct | July 2027–August 2028 |
| ACCA | FA | Direct | September 2026–June 2027 |
| ACCA | FR | Direct | Official assessment-window verification pending |
| ACCA | K1 | Direct | July 2027–August 2028 |
| ACCA | SBR | Direct | Official assessment-window verification pending |
| CIMA | BA3 | Direct | Official assessment-window verification pending |
| FIA | FFA | Direct | September 2026–June 2027 |