Under the current Conceptual Framework which of the following is not an essential characteristic of an asset?
A) It must have physical substance.
B) The resource must be controlled by the entity.
C) It must have the potential to contribute to the flow of cash and cash equivalents to the entity.
D) The event giving rise to the entity's control over the resource must have occurred.

Question

Quizplus · Accepted Answer

Under the current Conceptual Framework, an asset is defined as a resource controlled by the entity that has the potential to contribute to future economic benefit, which can be in the form of cash or other assets. The physical substance is not a necessary characteristic for an item to be recognized as an asset, as intangible assets are also recognized under certain circumstances.

Under the Current Conceptual Framework Which of the Following Is