Asset (accounting)

An Asset is built with goods and services, with functional and operational capacities that are maintained during the full development of each specific socio-economic activity. The assets of companies vary according to the nature of the activity carried out.

Assets of a company

It is the set of economic goods and rights that a company has.

The IASB (International Accounting Standards Board) Conceptual Framework for Financial Reporting, issued on January 1, 2012, establishes the following definition:

“Asset is a resource controlled by the entity as a result of past events, from which the entity expects to obtain future economic benefits”. This also reflects the investment made by the company to carry out its economic activity.

In the registrations or accounting records when a variation of an asset element occurs, this can be of two types:

• increase in assets, load or debita by noting in must or
• decrease in assets abona or credit, that is, annotation is made in the There must be.

Your balance at the end of the accounting year is always debit or zero.

Examples of assets: Cash, Securities to be deposited, Vehicles, Registered Trademarks, Merchandise, Debtors for sale....

Types of assets

• Current assets: Goods and rights acquired with the intention that they remain less than a year; as is the case of stocks.
• Non-current or fixed assets: Property and rights acquired in order to remain in the company for more than a year, which have not been acquired for sale; such as machinery and real estate.
• Financial assets: A financial asset is the same intangible asset materialized in a title or simply in an accounting annotation, by which the purchaser of the title acquires the right to receive a future income from the seller. The financial assets are issued by the economic units of expenditure and constitute a means of maintaining wealth for those who possess it and a liability for those who generate it.
• Intangible assets: An intangible asset is defined by its own name, that is not tangible, cannot be physically perceived. The intangible asset is therefore of an immaterial nature. For example, the value of a brand, which cannot be physically measured. It is taken into account in accounting because it has the capacity to generate future economic benefits that can be controlled by the economic entity.
• The underlying asset: It is an asset that, in derivative products markets, is subject to a standard contract and is the subject of exchange. That is, it is that asset on which the negotiation of a derivative asset is made.
• Functional assets: this is called the part of the asset that contributes, according to the purposes and objectives of a company, in the production of goods and services thereof.
• Deferred assets: They represent costs and expenses that are not charged in the period during which the disbursement is made, but are postponed to be charged in future periods, which will benefit from the income generated by these disbursements; applying the accounting principle of the income and expenditure association. These are expenses that do not occur on a recurrent basis.
• Long-term assets: They are tangible assets with an average life of more than one year, which is not made to resell and which is used in business operations; these may include plant and equipment, but not inventory or accounts receivable. They are those who have a physical appearance, and can be touched, such as coins, buildings, real estate, vehicles, inventories, equipment, and precious metals.
• Short-term assets: These are titles issued by public or private entities in order to obtain financial resources to c/p by investors. Financially they are simple operations generally emitted at the discount, consisting of a benefit (the cash delivered at the start of the operation) and a counterfeit (the nominal of the title to be received at the end of the operation). The most common operations

Assets according to the Spanish General Accounting Plan 2007

Definition of asset

As defined by the Conceptual Framework of the Spanish General Accounting Plan, assets are the assets, rights and other resources economically controlled by the company, resulting from past events from which benefits or economic returns are expected to be obtained in the future.

Accounting recognition

According to section 5 of the Conceptual Framework of the PGC, assets must be recognized in the balance sheet when it is probable that they will obtain benefits or economic returns for the company in the future, and provided that they can be reliably valued. The accounting recognition of an asset also implies the simultaneous recognition of a liability, the decrease of another asset or the recognition of income or other increases in net worth. depending on the accounting context

Evaluation criteria

Asset valuation criteria used in the PGC:

• Historical record
• Reasonable value
• Current value
• Value in use
• Coste amortized
• Residual value

Composition of assets according to the General Accounting Plan

According to the General Accounting Plan, assets are broken down as the sum of current and non-current assets.

Total assets are the sum of current assets and non-current assets. with passive