Asset characteristics

1. Assets are expected to bring economic benefits to enterprises. Refers to the possibility that assets directly or indirectly lead to capital or cash equivalents entering the logistics of an enterprise. This potential can come from the daily production and operation activities or non-daily activities of enterprises; Economic benefits can be cash or cash equivalents, can also be converted into cash or cash equivalents, or reduce the logistics of cash or cash equivalents.

2. Assets should be resources owned or controlled by enterprises. As a resource, assets should be owned or controlled by enterprises. Specifically, it means that enterprises enjoy the ownership of resources, or although they do not enjoy the ownership of resources, resources can be dominated by enterprises. Generally speaking, ownership is the main factor to consider when judging the existence of assets. However, in some cases, although some assets are not owned by enterprises, that is, enterprises do not enjoy ownership, the control of these assets by enterprises also shows that enterprises can obtain economic benefits from these assets. The ownership or control of an enterprise means that the enterprise enjoys the ownership of a certain resource, or although it does not enjoy the ownership of certain resources, the resource can be controlled by the enterprise. For example, financial leasing.

3. Assets are formed by past transactions or events of the enterprise. In other words, assets must be real assets, not expected assets, they are the result of past transactions or events. Past transactions or events of an enterprise include procurement, production and construction. Transactions or events that are expected to occur in the future do not constitute assets.

1) Assets are resources formed by past transactions or events. Assets must be physical assets, not expected assets. The past transactions or events of the enterprise referred to here include procurement, production, construction or other transactions or events.

Assets must be owned or controlled by enterprises. Enterprise ownership or control means that the enterprise enjoys the ownership of assets, or although it does not enjoy the ownership of assets, the resources can be controlled by the enterprise. For example, the fixed assets of financial leasing should also be recognized as enterprise assets in accordance with the requirement that substance is more important than form.

2) Assets are expected to bring economic benefits to enterprises. The expected economic benefit of an enterprise refers to the potential that directly or indirectly leads cash and cash equivalents to enter the logistics of 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 enterprises cannot be recognized as enterprise assets.