According to the IASB Conceptual 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 IASB Conceptual Framework, an asset is a resource controlled by the entity as a result of past events, and from which future economic benefits are expected to flow to the entity. Therefore, the characteristic that an asset must have is that it should be expected to provide future economic benefits to the entity. Ownership, the occurrence of the transaction, and the likelihood of future economic benefits are secondary characteristics.

According to the IASB Conceptual Framework an Asset Should Have