There are two asset definitions in current IFRS Standards, in IAS 38 Intangible assets and in the Conceptual Framework for Financial Reporting. The wording deviated but the meaning is exactly the same, here they are:
IAS 38 Intangible assets
The asset definition as per IAS 38 Intangible assets is as follows – an asset is a resource:
- controlled by an entity as a result of past events; and
- from which future economic benefits are expected to flow to the entity.
Before providing examples of assets, let’s analyse the asset definition.