1. Chapter 10 Assets Recognize importance of assets in new view.
Define assets.
Identify concerns about the definition of assets.

2. Importance of B/S No, the Balance Sheet! Importance…
Start with assets….

3. Assets-Their Nature 3 Reasons for New Importance What are they?
Easy to imagine…

4. Asset Definition SFAC 6 definition
Assets are probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events.
1980 ? Why so hard to define assets?

5. Assets SFAC 6 required elements: probable (Reasonably Expected)
f.e.b. in cash flows (direct & indirect)
controlled: exclude; shared
past transaction
Lottery ticket: first issue

6. Asset Valuation
Valuation not value
Two Valuation models

7. Asset valuation Dominant vs. Consistent with definition ?
Lottery ticket case, second issue- $
Third issue, effect of secondary market

8. Asset Issues Controversy: W. Schuetz Two concerns….
Cash, claims to cash or services and things that can be sold separately for cash.
Agree with him?

9. Asset issues Controversy: Samuelson Assets vs expenses
Economic (benefit) vs legal (proprietary) components

10. Other Asset Definition Concerns
Probable? 65%, 79%, 80% or whatever
Past trans or event?
Transaction based?

11. Reporting Assets
Classification