Assets

Tags

finance

A [see page 23, resource] controlled by an entity from which economic benefits are expected to be received.

We can [see page 26, define]:

Which can be interpreted as whatever the entity owns is funded by debt or the capital provided by its owners.

Assets can be [see page 28, classified] as: Current when their to be converted into cash, sold or consumed in 1 year or Operating Cycle (whichever is longer). Any assets that can't be classified as current are non-current.

When a non-current asset is purchased, it's cost is [see page 11, divided] over the years in which it's expected to recoup it's initial cost in the statement of financial position. This concept is known as depreciation. That is if we buy something for £100.00 in one year and expect to regain that cost using it over the next 10 years, each year we list a cost of £10.00 until we meet the initial cost, at which point we start considering it as profit.