What is an asset?

Under the FASB's definition of an asset, assets are not recognized unless the reporting enterprise acquires them by paying cash or agreeing to pay cash in the future or someone contributes something to the reporting enterprise in return for an ownership interest in the enterprise. Then an asset is said to have a cost. The cost of many assets does not represent anything close to the probable future economic benefit to be derived from the asset. It is suggested that an alternative definition would vastly simplify the practice of accounting. Accounting should result in financial statements that ordinary people will understand and therefore be able to use to make investment and credit decisions. Using that alternative definition of an asset would not govern or suggest which attribute of the asset ought to be or could be selected for recognition and measurement and reporting on the face of the balance sheet. The definition of an asset that is in use today is too inclusive, overly complex, and vague.