An asset is anything of value your business owns or controls that is expected to provide future economic benefit, from cash to equipment to intellectual property.
Assets sit on the left side of the balance sheet and are split into current assets (cash, receivables, inventory, expected to be used or converted within a year) and non-current assets (equipment, vehicles, buildings, intangibles, held longer term).
For tax, how an asset is treated depends on its type. Long-lived assets are capitalised and deducted over time through capital cost allowance rather than expensed immediately, while inventory and supplies flow through as they are used. Getting the classification right determines when you get the deduction.
A delivery company's assets include the cash in its bank account (current), the receivables owed by customers (current), and its trucks (non-current). The trucks are capitalised and depreciated through CCA Class 10 rather than deducted in full the year they were bought.
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