Economic resource
The Conceptual Framework defines an asset as a present economic resource controlled by the entity as a result of past events. A right can have the potential to produce benefits even when the probability is low, although recognition and measurement require separate assessment. Rights can arise from contracts, law or other means. The economic resource is the right, rather than necessarily the physical object to which it relates.
Worked example
A business holds an enforceable right to receive cash from a customer. That right has the potential to produce economic benefits and is an economic resource; whether and how it is recognised depends on the applicable standard.
Common mistake
Assuming a resource must be certain to produce cash to meet the definition, or confusing the definition of an asset with its recognition criteria.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | FR | Direct | September 2026–June 2027 |
| ACCA | SBR | Direct | September 2026–June 2027 |