Study 5 - Definition and Recognition of Assets

This Study identifies and describes the variety of views which exist about whether, when and how specific assets should be measured and reported in the public sector. It considers and explores:

• the definition and recognition of assets;
• the effect of different bases of accounting on the definition and recognition of assets; and
• the issues associated with certain types of assets.

The Study acknowledges that the demand for government services has increased. This growth in demand has meant increasing competition for government services, stimulated by education standards, communication and community interest in government actions.

Consequently, governments are under pressure to manage their assets efficiently and effectively. Accountability for efficiency and effectiveness of public sector asset management can be shown through better financial reporting. Better reporting provides a basis of understanding by the public, elected decision makers and by management. This, in turn, supports better decision making and asset allocation.

Study 5 - Definition and Recognition of Assets (PDF | 3.4 MB)
Date: Aug 01, 1995
Author: IPSASB

Related Resources

• Budget Reporting
• Estudio 14 - Transición a la base contable de acumulación (o devengo): Directrices para entidades del sector público (Tercera edición)
• International Public Sector Accounting Standards (IPSASs) and Statistical Bases of Financial Reporting: An Analysis of Differences and Recommendations for Convergence
• Study 14 - Transition to the Accrual Basis of Accounting: Guidance for Governments and Government Entities (Third Edition)
• The Road to Accrual Accounting in the United States of America