Assets and Properties; Complication in the Difference

Abstract

The terms assets and property are looking similarly in the meaning and can be used interchangeably, or if it is used by a particular group, the term “asset” is used by the accountant while the term “property” is used by the lawyer. However, when considering to the context of these two terms, they are different in many aspects, instead. All assets are considered as the properties, but on the other hand, all properties are not assets. Under the accounting which assets are items can be recognized on the financial report (financial statement). Thus, under the theory of accounting and accounting principles, the rules of item’s recognition for the assets have been set out as are Recognition, Measurement, and Disclosure. If any item conforms with the item’s recognitions, such items will be subject assets. The financial report will reflect the economic benefit for the financial report’s user can use the information of assets for the decision making. The word “properties” under law is the legislation which tends to control the acquisition, disposition, and loss of rights on the properties of the people and including with other principle necessary for state in the controlling resources in the sovereignty power of the state for the optimize benefits and social order. This is because properties are the limited resources and important to the stability of the state in terms of economic, society and state security.