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ASSETS (Underlying Assumptions (Accural Basis (Matching expenses to the…

- - - - As long as it makes a difference towards making the decision for the report user
    - - Reliable
      - Free from Bias
      - Must be true and Fair
    - - Faithful representation is enhanced by a historical focus
      - Relevance explores future resource decisions
  - - - Some information to prove its true and fair
    - - Must be on time
    - - Compare company performance with other businesses
        
        E.g Woolies and Coles
      - Compare the company performance every year
    - - Anyone using this report should be able to understand it
- - - - Future Economic Benefit
        
        Has the potential to contribute to cash flow through its use
        
        Does it help make us save/ make money?
        
        Can we sell it for cash or convert it to cash?
      - Result of Past events
        
        Other transaction/events
        
        Transaction or events expected to occur DO NOT meet the definition of an asset
        
        Intention to purchase it DOES NOT meet the definition of an asset
        
        Can be done by usually purchasing or producing it
      - Controlled by the entity
        
        Not entirely limited to legal ownership- it can satisfy the definition even if the entity doesnt have legal ownership
        
        If the entity controls the benefits expected to flow to the entity
    - - Probable that the economic benefits will flow to the entity
      - Item has a cost/value that can be measured with reliability