Asset Definition

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International Accounting Standards Board

This document is provided as a convenience to observers at the World Standard Setters meeting, to assist them in following the discussion. It does not represent an official position of the IASB.

Board positions are set out in Standards. Note: These notes are based on the staff papers prepared for the World Standard Setters meeting. Paragraph numbers correspond to the paragraph numbers in the staff papers.

INFORMATION FOR OBSERVERS WORLD STANDARD SETTERS MEETING, SEPTEMBER 2006, LONDON AGENDA PAPER 1A ____________________________________________________________

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Conceptual Framework Asset Definition

INTRODUCTION 1. Over the last six months or so, the IASB and FASB (the Boards) have commenced discussion of Phase B of the Conceptual Framework project, which involves consideration of the elements of financial statements, as well as recognition. In particular, the Boards have focussed on developing a proposed working definition of an asset. 2. Development of the asset definition is the first step of a multi-step process to determine how to account for an asset. This paper, and the Boards’ discussions to date, focuses on the existence of an asset and NOT on whether it should be recognized (for example, given practicality concerns) or how it should be measured. Therefore, conclusions reached as to

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World Standard Setters Meeting, September 2006 Definition of an Asset what meets the definition of an asset do not necessarily mean that all assets (as defined) will be recognized in financial statements.1 Purpose of World Standard Setters’ Discussion 3. The objective of this session is to inform, and solicit views of, World Standard Setters about the proposed working definition of an asset. 4. World Standard Setters will have an opportunity to discuss the...