Assets refer to resources formed by past transactions or events of an enterprise, which are owned or controlled by the enterprise and are expected to bring economic benefits to the enterprise. The main characteristics of assets are:

(1) Assets are formed by past transactions or events of the enterprise. Past transactions or events of an enterprise include purchase, production, manufacturing or other transactions or events. It is expected that future transactions or events will not form assets.

(2) Assets are resources owned or controlled by enterprises. The ownership or control of an enterprise means that the enterprise enjoys the ownership of a certain resource, or although it does not enjoy the ownership of a certain resource, it can be controlled by the enterprise.

(3) Assets are expected to bring economic benefits to enterprises. The expected economic benefits to the enterprise refer to the potential that directly or indirectly leads to the inflow of cash and cash equivalents into the enterprise.