Reference no: EM13487234
Background
Following is the definition of an asset from three sources:
? SFAC No. 6, paragraph 25: "Assets are probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events."
? IASB The Conceptual Framework for Financial Reporting, Chapter 4, paragraph 4.4(a): "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."
? The Boards' working definition as of October 2008 from the Joint Project on Conceptual Framework, Phase B - Elements and Recognition: "An asset of an entity is a present economic resource to which the entity has a right or other access that others do not have."
Required
? Read each definition and compare and contrast the FASB and IASB versions and then compare to the Boards' definition.
? What is the best definition and why?
? Review the following items and evaluate if they should be recorded as an asset under the Boards' definition defined above. Focus on "... present economic resource" and "... right or other access" in your analysis. Complete the table provided.
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Item
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"... present economic resource"
(Y/N)
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"... right or other access"
(Y/N)
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Asset
(Y/N)
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Cash
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Accounts receivable
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Uncollectible accounts receivable
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Raw materials for inventory
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Accounts receivable arising from future sales
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Proven oil reserves
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Goodwill
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Find by how much did the internal energy of the gas change
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Express the definition of a liability from three sources
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How long would it have taken for the ball to hit the ground
: If that ball had been released from the same height, but this time above the surface of the moon, how long would it have taken for the ball to hit the ground
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What is the best definition and why
: IASB The Conceptual Framework for Financial Reporting, Chapter 4, paragraph 4.4(a): "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."
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Compute at what angular speed should the ring rotate
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How large a volume of hydrogen is required
: A plastic bag is filled with hydrogen at atmospheric pressure and 26.0 oC. How large a volume of hydrogen (in m3) is required
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Compare and contrast the fasb and iasb versions
: SFAC No. 6, paragraph 25: "Assets are probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events."
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