ACCA FR · Chapter 1 · Question 2 of 10
Under the IASB Conceptual Framework, how is an asset defined?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) A present economic resource controlled by the entity as a result of past events
Explanation
The Framework defines an asset as a present economic resource controlled by the entity as a result of past events, where an economic resource is a right that has the potential to produce economic benefits. Control, not legal ownership, is the key test, and certainty of inflows is not required. Measurability is a recognition consideration, not part of the definition.
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