Economic resource and Economic risk: Difference between pages

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1. ''Financial reporting - balance sheet - International Accounting Standards (IAS).''
The risk associated with changes in exchange rates, local regulations or business environment, which could disadvantage the company’s long-term economic model or favour the services or products of a competitor.  
 
This type of exposure is very difficult to mitigate.
For IAS reporting, an economic resource is defined as a right that has the potential to produce economic benefits.
 
Present economic resources controlled by a reporting entity as a result of past events are assets for financial reporting purposes.
 
Examples include cash, trade receivables, inventory, tangible fixed assets and some intangible assets.
 
 
2.
 
More generally, anything that has the potential to produce economic benefits.


Also known as economic exposure.


== See also ==
== See also ==
* [[Accruals accounting]]
* [[Economic exposure]]
* [[Assets]]
* [[Exchange rate]]
* [[Balance sheet]]
* [[Capital]]
* [[Equity]]
* [[Financial asset]]
* [[Financial liability]]
* [[Intangible assets]]
* [[Inventory]]
* [[Liabilities]]
* [[Liabilities and equity]]
* [[Net assets]]
* [[Reporting entity]]
* [[Tangible asset]]
* [[Trade receivables]]


[[Category:Accounting,_tax_and_regulation]]

Revision as of 14:19, 23 October 2012

The risk associated with changes in exchange rates, local regulations or business environment, which could disadvantage the company’s long-term economic model or favour the services or products of a competitor. This type of exposure is very difficult to mitigate.

Also known as economic exposure.

See also