An asset is a resource owned or controlled by an individual, or government with the expectation that it will generate a more positive economic benefit. The IFRS defines an asset as “An asset is a resource that is controlled by the enterprise as a result of various past events and from which future economic benefits are expected to flow with the enterprise.” Common types of assets always include current, non-current, physical, intangible, operating, and non-operating. Identifying and classifying assets is necessary to the survival of a company, specifically its associated risks. There are three key properties expected of an asset: Ownership: Assets represent ownership that can eventually be turned into cash or cash equivalents. Economic Value: Assets have an economic value and it can be exchanged or sold. Assets are definitely the resources that can be used to generate various future economic benefits.  Classification of various Assets :Assets are always classified in three ways: Convertibility i.e, Classifying assets that is based on how easy it is to convert the assets into cash, Physical Existence: Classifying assets based on their overall physical existence (of other words, tangible vs. intangible assets), Usage: Classifying assets that are based on their business operational usage or total purpose.