According to the Conceptual Framework which of these is not an essential characteristic of an asset?
A) There must be future economic benefits.
B) It must have a re-sale value.
C) The entity must have control over the future economic benefits.
D) The event giving rise to the entity's control over the resource must have occurred.

Question

Quizplus · Accepted Answer

According to the Conceptual Framework, an essential characteristic of an asset is that it has the ability to generate future economic benefits and the entity must have control or access to those benefits. However, the re-sale value is not an essential characteristic of an asset. An asset may have a re-sale value, but it is not necessary for it to be classified as an asset.

According to the Conceptual Framework Which of These Is Not