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Assets

In: Business and Management

Submitted By Saini0717
Words 374
Pages 2
Asset plays a vital role for the sustainability of the company and it is the main financial instruments of the company however we can’t find more enough about asset figure in accounting field. Since total assets are one of the central concepts of accounting, this essay is going to address the term of assets its measurement, the problem arises due to addityvity, categorisation and treatment of asset and the qualitative characteristic of standards.
Assets are categories in current assets and noncurrent, tangible and non tangible assets. As these assets are categories differently as a same way there are different measurement basis of assets. There are different ways of measurement for the assets but still there is a problem of addivity. This problem arises when there are different types of assets in the company and measurement for all assets is in same basis. These cause the problem of addivity because we can’t add different asset by the same measurement method. Company have to measure according to the nature of asset . Accounting standard board has prepared qualitative characteristics of financial information such as faithful representation, relevance, understandability, timeliness, comparability and verifiability which are helpful while making measurement decision in the company. Most important assumptions in decision making process and improvement economy is existence of quality financial information. Significant number of this information comes from accounting information systems and from financial statements.

Assets are integral part of financial statement and company. Protecting an assets can help reduce risk to the business. For example, maintaining tangible assets like production machinery in good condition can help to protect business from health and safety risks, inefficiency and lost working time. Protecting intangible assets, such as brand or trade...

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