asset classification


asset classification
The classification of assets as required by law on a balance sheet. Assets must be classified as fixed (i.e. held for use on a continuing basis) or current (i.e. not intended for continuing use but held on a short-term basis). Fixed assets are further classified as intangible (e.g. goodwill) or tangible (e.g. land and buildings). Fixed assets must be depreciated (see depreciation) over their useful economic life to comply with the Companies Act and Financial Reporting Standard 15. Current assets include stock, debtors, prepayments, cash at bank, and cash in hand. Fixed assets may be shown at historical cost less accumulated depreciation, or under the alternative accounting rules. Current assets must be shown at the lower of historical cost (or current cost under the alternative accounting rules) and net realizable value

Accounting dictionary. 2014.

Look at other dictionaries:

  • asset classification — recording one s holdings and property in the appropriate categories of a balance sheet …   English contemporary dictionary

  • Asset Mix — The classification of all assets within a fund or portfolio. Assets are assigned to one of the core asset classes: stocks (equities), bonds (fixed income), cash and real estate. Other categories that are sometimes considered asset classes are… …   Investment dictionary

  • Classification of accounts — According to Modern approach Accounts are classified into five groups: Asset Expense Revenue Liability Capital According to Traditional approach Accounts are classified into three groups: Real – all the assets except Debtors Nominal – all the… …   Wikipedia

  • Classification Of Accounts — According to Modern approach Accounts are classified into five groups: *Asset *Expense *Revenue *Liability *CapitalAccording to Traditional approach Accounts are classified into three groups: *Real : all the assets except Debtors *Nominal : all… …   Wikipedia

  • Non Performing Asset — means an asset or account of borrower, which has been classified by a bank or financial institution as sub standard, doubtful or loss asset, in accordance with the directions or guidelines relating to asset classification issued by The Reserve… …   Wikipedia

  • National Asset Management Agency — Agency overview Formed Late 2009 Jurisdiction Ireland …   Wikipedia

  • intangible pension asset — An asset booked to offset the additional minimum pension obligation. This asset is created under the FAS 87 rules to offset the minimum liability for underfunded plans that FAS 87 required firms to recognize as a liability. Little or no… …   Financial and business terms

  • Mineral resource classification — is the classification of mineral deposits based on their geologic certainty and economic value. A McKelvey diagram showing the relationship of mineral resource classifications to economics and geologic certainty.[1] Mineral deposits can be… …   Wikipedia

  • Standard Industrial Classification — Le Standard Industrial Classification (classification normalisée des industries, abrégé en SIC) est un système de classification des industries utilisant quatre chiffres établi par le gouvernement des États Unis dans les années 1930. Il fut… …   Wikipédia en Français

  • Adversely Classified Asset — A type of loan classification in which the loan or other asset is considered, to some degree, to be impaired. It is an asset that is considered by bank examiners to be of substandard credit quality and whose full repayment of principal and… …   Investment dictionary