ternal users. The most important reason of financial reports is that you have to and is required by the law to do so. Answered Change your response to resave 04 Define asset as one of the five elements of financial statements in accordance with current Conceptual Framework. (6 marks) Further, explain whether each of the following two items satisfies the abovementioned asset definition (a) goods held on consignment for another entity, (b) a piece of specialised equipment with zero disposal value, which now because of downsizing, is surplus to requirements and has therefore been retired from use. I Unanswered Save