In simple terms, an asset is a resource having future economic benefit owned by an entity. Future benefit could mean in terms of contributing to the profit for profit oriented organizations and providing services for non-profit oriented organizations.
Assets are formally controlled and managed within larger organizations via the use of asset tracking tools. These monitor the purchasing, upgrading, servicing, licensing, disposal etc., of both physical and non-physical assets.
Assets may be classified in many ways.
1. Current assets (Current deposits, Inventory)
2. Long-term investments (Investments in securities)
3. Fixed assets (land,buildings, machinery, furniture, tools)
4. Intangible assets (patents, copyrights, franchises, goodwill, trademarks)
Fixed assets are those that are expected to keep on providing benefit for more than one year. Some common examples are: scientific equipment, office equipment, photo copiers, land and buildings, vehicles, Machinery, Property held for Investment purpose.