What are the main characteristics of assets

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

The three basic characteristics of an asset:

(1) An asset is formed by a business as a result of past transactions or events.

(2) An asset is an economic resource owned or controlled by a particular enterprise.

(3) The most important characteristic - an asset is expected to bring economic benefits to a business.

Asset:

An asset is a resource that is formed by past transactions or events of an 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 treated as assets and are the rights of the enterprise. Assets can be categorized into current assets, long-term investments, fixed assets, intangible assets and other assets according to their liquidity. Among them, current assets are assets that can be realized or consumed within one year or more than one business cycle, including cash, bank deposits, short-term investments, receivables and prepayments, amortizable expenses, and inventories. Long-term investments refer to investments other than short-term investments, including all kinds of investments of equity nature with holding time ready to exceed 1 year (excluding 1 year), bonds that cannot be realized or are not ready to be realized, other debt investments and other long-term investments. Fixed assets refer to houses, buildings, machines, machinery, means of transportation, and other equipment, appliances and tools related to production and operation that are used by the enterprise for a period of more than one year. Intangible assets are non-monetary long-term assets without physical form held by an enterprise for the production of goods or provision of labor services leased to others, or for management purposes. Other assets are assets other than current assets, long-term investments, fixed assets, intangible assets, such as fixed assets, repairs, alteration expenditures and other long-term amortized expenses formed.

Two essentials of assets:

(1) The economic attributes of assets that can provide future economic benefits for the enterprise, which is the essence of assets. In other words, whether tangible or intangible, to become an asset, it must have the ability to generate economic benefits, which is the first essence of assets.

(2) the legal attributes of the asset that must be controlled by the enterprise, that is to say, the economic benefits generated by the asset can reliably flow into the enterprise, the ability to provide services for the enterprise, regardless of whether the enterprise has ownership of it, which is the second essence of the asset.