CIMA BA3 · Chapter 1 · Question 4 of 10
Under the IASB Conceptual Framework, an asset is defined as:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) A present economic resource controlled by the entity as a result of past events
Explanation
The Conceptual 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 test, and certainty of benefits is not required. Planned future transactions do not create a present resource.
More The accounting framework and the Conceptual Framework MCQs
- Q6Which of the following is NOT one of the elements of financial statements identified in the IASB Conceptual Framework?
- Q7Which body is responsible for developing and issuing IFRS Accounting Standards?
- Q8A business is set up as a limited liability company rather than as a sole trader. Which of the following is a consequence of this?
- Q9Which of the following is a current value measurement basis described in the IASB Conceptual Framework?
- Q10Under the revised IASB Conceptual Framework, an item that meets the definition of an element is recognised in the financial statements when: