A present economic resource (mawrid) that an entity controls as a result of a transaction occurred in the past, or a past event or condition, that has the potential to produce future benefits for the entity. In Islamic finance, assets are attributed to equity, quasi-equity, and liabilities. If an economic resource meets the requirements of this definition (criteria of recognition), then it is an asset, and as such, it is recognized on an entity’s balance sheet.
An asset is derecognized from a statement of financial position (balance sheet), when control is transferred to another party by means of sale, disposal, barter, gift or donation, surrender, etc. Derecognition also takes place when the use or disposal of an asset no more produces any current economic benefits (or is not expected to produce any future economic benefits). This may happen when an asset is destroyed or fully impaired, etc.
