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Access to a public road outside an entity’s property might provide a right to an economic benefit, but if the entity cannot restrict access to that road, the road is not an asset of the entity. A right that is not restricted, such as a right to sue or a right to enjoy music, is not an asset of an entity. The ability to restrict others’ access is a component of an asset of an entity because the ability to restrict creates an advantage in the form of privileged access and control of economic benefits. Things that give an entity no advantage beyond the common advantages of others because they are available to all do not qualify as assets. An asset has the capacity to be beneficial to an entity by being exchanged for something else of value to the entity, by being used to produce something of value to the entity, or by being used to settle the entity’s liabilities. Loans and investments (post ASU 2016-13 and ASC 326)Į20. Transfers and servicing of financial assets Revenue from contracts with customers (ASC 606)
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Investments in debt and equity securities (pre ASU 2016-13) Insurance contracts for insurance entities (pre ASU 2018-12)Įquity method investments and joint ventures Insurance contracts for insurance entities (post ASU 2018-12) IFRS and US GAAP: Similarities and differencesīusiness combinations and noncontrolling interests