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An asset is defined in the Danish Financial Statements Act as the resources under the control of the company.
An asset can be anything from real estate and cars to inventory, stock and machinery.
Although assets are often used in the context of businesses and the associated balance sheet in the financial statements, assets also include the resources, things and objects that a private individual owns; typically this is real estate, cars, boats and other movable assets that the individual owns.
Read also: Liabilities
Different types of assets
There are different types of assets in a business. First and foremost, there are fixed assets, which are defined as those assets that are under the company's control and in continuous use. This includes, but is not limited to, buildings, production facilities, machinery, cars and the like.
In addition, there are current assets, which are all assets directly related to revenue, such as inventory.
The most common fixed assets are tangible assets, i.e. assets that consist of physical things and entities. However, there are also intangible assets, which are those assets that are not tangible and physical, such as rights, licenses, goodwill, patents and the like.
Assets in the accounts
A company's assets appear on the company's financial statements in the balance sheet, where they are itemized under fixed assets and current assets.
Assets in connection with debt collection
Assets are not just an item on a balance sheet, but also a relevant topic when it comes to debt collection - for debt collection companies, lawyers and you as a creditor.
If a customer doesn't pay your outstanding debt, a debt collection company or creditor can, with the help of the enforcement court, seize a debtor 's assets - both from companies and private individuals.
In Denmark, attachments are often made against real estate, vehicles and similar major assets, but basically many more assets can be attached, such as expensive art, expensive jewelry and the like.
However, there are a number of requirements and rules related to attachment of assets.
