Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Note: ownership normally conveys rights of access, but it is not a prerequisite; contractual rights
(leases, licences, copyright etc) can give rise to assets.
Control also involves being able to prevent other parties using your assets/receiving benefits.
Future benefits:
often interpreted as giving rise to future cash flows
future benefits which cannot be evidenced are not assets
(e.g. large advertising campaign may give benefits for a long time, but it is not an asset as cannot
prove that benefits will continue.)
Normally the transfer of economic benefits will be future cash payments (can have barter
transactions).
Intuitively:
opening net assets are increased by net profit and further capital introduced
and reduced by any drawing (or dividends)
Users and their Needs
Investors: present and prospective
–Hold or sell shares
Income/returns (dividends) and their growth
Risk/security/stability of investment
Efficiency of management (re-appoint directors)
–Secondary issues: ethical/green investments
Management
–Achieving stewardship function
Safeguarding the company's assets
Managing the business efficiently
Satisfying fiduciary (trust) relationship
Public
Interaction with local economy/environment