Assets are economic resources controlled by a public sector entity as a result of past transactions or events and from which future economic benefits are expected to be obtained.
3 Essential Characteristics of Assets:
- They embody future economic benefits that involve a capacity, singly or in combination with other assets, to provide goods and services, to provide future cash inflows, or to reduce cash outflows;
- The public sector entity can control the economic resource and access to the future economic benefits; and
- The transaction or event giving rise to the public sector entity's control has already occurred.
Further Guidance as per PS 3210:
- when something is considered an economic resource (PSAS) (PS 3210.06-.10)
- whether future economic benefits (PSAS) are expected to be obtained (PS 3210.11-.15);
- determining whether the public sector entity has control (PSAS) (PS 3210.16-.24); and
- determining whether a past transaction or event (PSAS) has occurred (PS 3210.25-.29).
