The quality of assets is presented on the Balance Sheet

Assets ( TS ) is one of three basic elements are shown on the Balance Sheet ( BCDKT ) . On BCDKT , there are parts TS items but not actually based on TS if the concept . In contrast , there are accounts qualify as TS but not reported on BCDKT . In this paper , we want to clarify the concept of TS in accounting standards and giving recognition BCDKT TS presented on this day .

In Vietnam Accounting Standards No. 01 ( VAS 01 ) , TS is understood as the resources controlled by the enterprise , can be obtained economic benefits in the future . Dr. concept has a need to clarify some points :

First, an item is considered TS when it can bring economic benefits to future accounting unit for the sake of economic gain in the future can not entirely sure that 's just conjecture SJU reasonable on the basis of the evidence available . The economic benefit here is understood as economic resources , that is, it has to ensure scarce ensuring user characteristics . If you lack one of these conditions , animals that are not classified as economic resources . Characterization of a user account that is expressed through the ability to provide its services or future economic benefits in the future .

Second, a provision that is considered the TS when it must be controlled enterprises . Accounting source not to mention the economic benefits that generally only related to the business benefits of a particular control . As control here is understood as the right to use or control of any thing that is not its ownership . This explains why Dr. finance lease to be reported on the lessee's bcdkt whether it belongs ownership lessor .

Third, a provision that is considered the required TS as a result of past transactions . This condition is required to ensure that the TS is not considered random TS unit . If a device has been purchased , the unit of accounting devices that the TS unit , but if the equipment that will be purchased this unit , it was not reported as TS unit .

Thus, in accounting concepts , three conditions necessary for an item to be recognized as a PhD accounts , including the ability to provide economic benefits in the future , unit testing specific accounting control and operational results of the past. However, in reality , there are exceptions , there are not sufficient amounts of all three of the above conditions have been reported on BCDKT and reverse the eligible amounts not yet been reported on BCDKT .

Examples of exceptions as first bond issuance costs and costs of defects created in the permitted level . These expenses are incurred not pose future economic benefits for the accounting unit but still be included in prepayments actually bring future economic or business are capitalized and presented as the other TS account .

Some examples of exceptions Monday as human resources or a government account research and development . These are real accounts to ensure the conditions noted under the concept but Dr. whole or in part is not recognized as an accounting unit of the TS .

Another feature that scholars want an account that is reported as a TS is mandatory it is likely to be exchanged . According to these scholars , if not guarantee this condition , the amounts of which will lack the economic value due to inability to buy and sell , or otherwise nonexistent market for these amounts . Dr. affected this perspective is the largest commercial advantage because it can not be sold separately , far out of business other TS . However, more recent scholars and in fact penchant for the notion that goodwill due to purchase accounting unit should be reported as a TS on BCDKT account .

Thus , the concept of TS in VAS is just the first step in the process of determining TS in the real world and then wrote them down in a book and presented on BCDKT . Between concept and determining TS TS in practice there are common parts and private parts .

In fact , the fundamental characteristics in recognition of an item may be incorrect or TS based on the following basic characteristics :

Based on the law .

The enterprise has the legal right to future economic benefits not ? The TS recorded a lot depends on legislative concepts of TS . The recognition of customer accounts receivable as TS for business selling goods or services as well as professional buy fixed TS brought under the jurisdiction of the examples used . This feature is related to the relevance and reliability of accounting information .

Using the precautionary principle

Losses can be estimated record profits but have no evidence chacn sure . For example , payable by the defendant company , in case the unit is the plaintiff , not recognized compensation can get as Dr. of the business.

Determination of the economic substance or business event .

To determine the economic substance of an event related to how the purpose of reporting accounting information appropriate materiality is an important factor . If such events bring economic substance , then it is large enough to be recorded and reported . There are many different sides to lock this feature, and therefore difficult to generalize , but a lot of regulations are based on the notion of economic substance . For example , the finance lease and operating lease will bring economic benefits to the enterprise but finance lease are recognized when there is a shift in the majority of the economic benefits to the lessee .

The ability to determine the value of TS . If accountants can not determine the value of a TS girl objectively , then TS is not recognized . That's why human resources are not recorded as TS , create goodwill is not recognized as TS . As determined likely related to the reliability of information .

Dr. Le Van Lien Nguyen Thi Thu Thuy ( Journal of Accountancy )

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