What is the difference between an “asset” and a “water asset”?
In general terms, an asset is anything that provides a future benefit, while a water asset is specifically water or a claim on water that provides a future benefit. For example, where a dam full of water exists, the dam itself might be considered an asset and the water within the dam a water asset. (Note, however, that if the water was held by the water entity on behalf of another water entity it would not be a water asset.) Economic assets must be disclosed in financial accounts, and water assets must be disclosed in water accounts.
In general terms, an ‘asset’ is anything that provides a future benefit, while a ‘water asset’ is specifically water or a claim on water that provides a future benefit. For example, where a dam full of water exists, the dam itself might be considered an asset and the water within the dam a water asset. (Note, however, that if the water was held by the water entity on behalf of another water entity it would not be a water asset). Economic assets are required to be disclosed in financial accounts and water assets will be required to be disclosed in water accounts. A water asset is formally defined by SWAC 4 as ‘water, or the rights or other claims to water, which the water reporting entity ether holds, or for which the reporting entity has management responsibilities, and from which an individual or organisation that is a water reporting entity, or a group of stakeholders of a physical water entity, derives future benefits’ (para.
