ASSET

BY : SECOND GROUP
DEFINITION

• Assets are considered to have properties as economic

benefits and economic resources because economic
benefits do not limit the form or type of economic
resources that can be included as assets.
ECONOMICAL FUTURE BENEFIT

• Assets are economic resources because the potential services

or utilities inherent in them are a rare power or capacity that
can be utilized by business entities in their efforts to bring
income through economic activities namely consumption,
production and exchange.
CONTROL BY ENTITY

• Economic benefits must be controlled by the agency concerned

to qualify as an asset. Ownership has juridical or legal meaning,
that is to have an object a process called property transfer is
needed.
PAST EVENTS

• Assets must be controlled by reporting entities as a result of

past events. For example, the machine that has been acquired
by the company is an asset, but a machine that will be acquired
according to the budget is not an asset until it has been
acquired, since the event, the purchase transaction, has not
occurred
EXCHANGEABILITY

• Some researchers argue that the asset definition must include the
condition that assets can be exchanged. Interchangeable means that the
item is separated from the company, and that its disposable value is
separate from the value of the company. The asset specifically affected by
the condition is goodwill, because it cannot be sold separately from other
assets.
MEASUREMENT

• One of the criteria for asset recognition is the economic

benefits that will be measured (measureability) which means
measurement here is the determination of the amount of
rupiah that must be attached to an asset object at the time of
acquisition, which will be used as basic data to follow the
physical flow of the object.
ASSESSMENT

• Objectives and Bases of Assesment

• Concept and Valuation of Asset
• Input Value
RECOGNITION

• As for the necessary conditions and sufficient conditions which are sufficiently detailed
examiners to recognize assets:
1. Detection of assets.
2. Economic resources and obligations.
3. Relating to the entity.
4. Contains value.
5. Relating to reporting time.
6. Verification.
DISCLOSURE

• In order for the financial statements to remain informative, matters that

must be disclosed as explaners of the financial statements are as follows:
1. If there is no capitalized interest, the total interest that occurs
during the period is charged as the cost of the period.
2. If a portion of the interest rate is capitalized, the total interest
incurred becomes a part that is capitalized.
PRESENTMENT

• In general, generally accepted accounting principles provide guidelines for the

presentation and disclosure of assets as follows:
1. Assets are presented at the debit side or left in the balance sheet in the account
format or at the top in the report format balance sheet.
2.Assets are clarified to be smooth and fixed assets.
3. Assets are sorted according to liquidity or smoothness, the most current is
listed first.
4.Accounting policies relating to certain items must be disclosed.
ASSET’S CLASSIFICATION

Assets are generally classified in three ways:

• Convertibility: Classifying assets based on how easy it is to convert them
into cash.
• Physical Existence: Classifying assets based on their physical existence.
• Usage: Classifying assets based on their business operation usage.
THANK YOU