According to the AASB Framework an asset should have a number of characteristics,including:
A) It must be owned by the entity.
B) It must be expected to provide future economic benefits to the entity.
C) The transaction giving rise to the ownership must have already occurred.
D) The future economic benefits must be very likely to eventuate.

Question

Quizplus · Accepted Answer

According to the AASB Framework, an asset is defined as a resource controlled by the entity as a result of past events and from which future economic benefits are expected to flow. Therefore, the asset must have the characteristic of being expected to provide future economic benefits to the entity, as stated in option B. Ownership (option A) and the occurrence of the ownership transaction (option C) are not necessary conditions for an item to be recognized as an asset. Option D is also not correct as while the future economic benefits need to be probable, they do not need to be certain to be recognized as an asset.

According to the AASB Framework an Asset Should Have a Number