What Are the Pros and Cons of Property as an Asset Class?

Assets refer to resources formed by past transactions or events of an enterprise, owned or controlled by the enterprise, and expected to bring economic benefits to the enterprise. Resources that do not bring economic benefits cannot be used as assets. They are the rights of the enterprise. According to liquidity, assets can be divided into current assets, long-term investments, fixed assets, intangible assets and other assets. Among them, current assets refer to assets that can be realized or consumed within one year or one business cycle over one year, including cash, bank deposits, short-term investments, receivables and prepayments, unpaid expenses, inventory, etc. Long-term investments refer to investments other than short-term investments, including investments of various equity nature that are held for more than one year (excluding one year), bonds that cannot be realised or not intended to be realised, other debt investments and other long-term investments. Fixed assets refer to houses, buildings, machines, machinery, transportation vehicles, and other equipment, appliances, and tools related to production and operation that have an enterprise's useful life of more than one year. Intangible assets refer to non-monetary long-term assets without physical form held by an enterprise for the purpose of producing goods or providing labor services for lease to others, or for management purposes. Other assets refer to assets other than current assets, long-term investments, fixed assets, and intangible assets, such as long-term deferred expenses. ^[1]

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1. Assets; Industry. "

1.Monetary funds

The "cash" account in the new standard was changed to "

In full

Cost concept

The not-elapsed cost concept is an early description of the nature of assets. American famous accountant

Regulations on Corporate Financial Reporting and

Confirm that, theoretically, the most stringent

The so-called measurement refers to

The balance sheet is one of the three major financial statements of an enterprise's financial report. Use appropriate methods and indicators to read and analyze the company's balance sheet in order to correctly evaluate the company's financial status and solvency. For a rational or potential It is extremely important for investors. Before reading and analyzing the balance sheet, you should know the following aspects:

assets

Cash on hand, bank deposits, other monetary funds, trading financial assets, goods in transit,

Chapter III of Accounting Standards for Business Enterprises

Article 20 Assets refer to resources formed by past transactions or events of an enterprise that are owned or controlled by the enterprise and are expected to bring economic benefits to the enterprise.

The past transactions or events of the enterprise referred to in the preceding paragraph include purchase, production, construction or other transactions or events. Transactions or events that are expected to occur in the future do not form assets.

Owned or controlled by an enterprise means that the enterprise enjoys the ownership of a certain resource, or although it does not enjoy the ownership of a certain resource, the resource can be controlled by the enterprise.

It is expected to bring economic benefits to the enterprise, which refers to the potential for direct or indirect cash and cash equivalent logistics to enter the enterprise.

Article 21 Resources that meet the definition of assets specified in Article 20 of these Standards are recognized as assets when they simultaneously meet the following conditions:

(1) the economic benefits related to the resource are likely to flow into the enterprise;

(2) The cost or value of the resource can be reliably measured.

Conditions for asset recognition

1. The economic benefits related to the resource are likely to flow into the enterprise;

2. The cost or value of the resource can be reliably measured.

Items that meet the asset definition and asset recognition conditions should be included in the balance sheet; items that meet the asset definition but do not meet the asset recognition conditions should not be included in the balance sheet. ^[10]