Category

2.1. Asset Classification

Theory

00:00 What is asset accounting;
00:39 Asset accounting under IFRS in UAE;
01:18 IFRS Asset recognition standard;
01:48 IFRS classification – non current assets;
02:31 IFRS classification – current assets;
03:11 Asset valuation & impairment best practices in UAE;
04:31 Summary of UAE IFRS asset classification.

Key Terms & Definitions

Asset — A controlled economic resource arising from a past event that is expected to generate future economic benefits and can be reliably measured (IFRS definition).

Asset Accounting — The IFRS-based process of recognizing, measuring, depreciating, revaluing, and disclosing assets in financial statements.

Recognition — The point at which an asset is included in the financial statements, only if IFRS recognition criteria are met.

Future Economic Benefits — The expected ability of an asset to generate cash inflows, reduce costs, or support operations.

Current Assets — Assets expected to be realized, sold, or consumed within 12 months. Examples: Cash, Receivables, Inventory, Prepayments.

Non-Current Assets — Assets expected to be used or provide benefit for more than 12 months. Examples: Buildings, Equipment, Vehicles, Software.

Property, Plant and Equipment (PPE) — Tangible non-current assets used in production or administration, accounted for under IAS 16.

Intangible Assets — Non-physical assets such as software, licenses, patents, accounted for under IAS 38.

Depreciation — Systematic allocation of an asset’s cost over its useful life, reflecting consumption of benefits.