An asset is defined by Financial Reporting Standard Number 5 as “a right or other access to future economic benefits controlled by an entity as a result of past transactions or events”. Future economic benefits might simply mean the conversion of the asset into cash (e.g. payment of cash received from a trade debtor). By contrast, a “fixed asset” describes ownership of an asset that can be used in the longterm to create value for a business (see also current assets, fixed assets, intangible assets).


reference: Business Studies / Accounting. Accounts & Finance Glossary. Jim Riley BA(Hons) MBA FCA // tutor2u