Asset-based recognition criteria: a comprehensive view

Abstract

Purpose

This paper aims to present a comprehensive view of the assets recognition criteria by providing a coherent set of pre-measurement themes that should be taken into consideration to be a candidate asset.

Design/methodology/approach

This paper is a conceptual review paper.

Findings

This synthesis review results in seven themes; the social constructionist nature of the conceptual framework (CF), the nature of assets, the changing nature of asset recognition, asset measurement bases, entity-specific vs market-specific recognition, the economic resource comprising “rights”, and finally, the role of “separability” in asset recognition.

Originality/value

With the increasing importance of internally created assets and their implications on the financial position of the business entity, and with coinciding of revisiting the CF for financial reporting (at the time of writing this paper), this paper shows a synthesis and comprehensive themes of asset-based recognition criteria for tangible and intangibles assets.

Citation

El-Tawy, N. (2020), "Asset-based recognition criteria: a comprehensive view", Journal of Financial Reporting and Accounting, Vol. 18 No. 2, pp. 251-275. https://doi.org/10.1108/JFRA-05-2018-0034