Definition and Nature of Accounting for Assets
Asset Accounting Is - Definition, Nature, Type, Method, Characteristics: Asset is a number of assets or economic resources owned by a company in the form of money, goods and rights arising from transactions that occurred in the past and can provide benefits in future.
Fixed assets
Definition of Asset Accounting
Assets are tangible and intangible company assets, as well as unallocated expenses or costs that still must be allocated to future income. Definition of assets according to some experts as follows: According to Dra. Lanita Winata, Accountant (1994, p. 55) explains: "Assets are a number of assets or economic resources owned by a company in the form of money, goods and rights arising from transactions that occurred in the past and can provide benefits in the past. which will come".
According to Financial Accounting Standards, in the basic framework of the preparation and presentation of financial statements (2002, p. 13, paragraph 49) explains: "Assets are Resources that are controlled by companies as a result of past events and from which future economic benefits are expected to be obtained by company ".
From the above definition it can be concluded that, assets are assets or resources owned and controlled by the company as a result of transactions that occurred in the past and are expected to provide benefits in the future.
Current asset
is an asset in the form of cash and has a short term. Included in current assets are:
Cash, cash to finance the company's operations. Short-term investments, investments that are temporary only to take advantage of money that is not needed in operations.
Receivable notes, company bills to other parties stated in the agreement provided for in law.
Trade receivables, claims to other parties as a result of selling merchandise on credit.
Inventories, both inventories of raw goods, processed goods and finished goods.
Receivable income, income that is already the right of the company but the payment has not been received.
Money / advances / fees paid in advance, expenses to obtain services or achievements from other parties. The expenditure is not yet the cost of the current period but in the next period.
Non-current assets
is an asset that is not cash and has a long period of time. Which includes non-current assets are:
Long-term investment, this investment is done if the company has more wealth than needed.
Fixed assets, assets owned by companies that are physically visible and play a role in the company's operations permanently, but also have an economic life of more than one period in the company's activities.
Intangible fixed assets, physical assets of a company that are physically invisible but constitute a right that has value and is owned by the company for use in company activities.
Deferred expenses, transactions that indicate expenses or costs that have long-term benefits.
Other assets, this item shows the wealth or assets of the company that cannot or cannot be included in the classifications previously described.
Definition of Fixed Assets
Fixed assets are tangible fixed assets that have a long-term economic use value, owned by the company to carry out operations to support the company in achieving its objectives and are not owned by the company for resale in order to obtain a return on the sale. The definition of tangible fixed assets was stated by several experts as follows:
According to Zaki Baridwan (1992, p. 271) explains: "Intangible fixed assets that are relatively permanent (indicating the nature that the assets in question can be used in a relatively long period of time) used in company activities".
According to the Financial Accounting Standards (2002, Number 16.2 Paragraph 05) "Fixed assets are tangible fixed assets that are used in a ready-made or pre-built form that is used in company operations. It is not intended to be sold in the context of normal company activities and has a useful life of more than one year.
From the above definition it can be concluded that tangible fixed characteristics are used in company operations, not for trading, economic life is more than one year which is relatively permanent or permanent and physical in meaning it can be seen and felt with the five senses.