Asset-based recognition criteria : a comprehensive view

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.