What are Assets?

Learn about assets with Mr. Bachchan and Sashi Kapoor.
Watch this scene carefully from the movie ‘Deewar’.

Case breakdown: Movie Deewar

Ravi and Vijay are brothers. If you watch this scene carefully Ravi (in a shirt is the Police officer) and  Vijay- Amitabh Bachchan (AB) (Blue coat is a thief) are having a conversation regarding their assets.

What you need to understand is AB defines Ravi’s assets as

  1. Rs. 500 salary job,
  2. A hired quarter,
  3. A jeep and
  4. 2 pairs of police’s (Khaki) uniform.

(Well, that’s not so nice according to AB). While the assets that AB boasts about are

  1. Car (Gadi in hindi),
  2. Building
  3. Property and
  4. Bank balance.

What are Assets in Business?

Assets in business are quite similar, they are divided into 3 sub heads:

  1. Current assets
  2. Fixed Assets/long- term assets
  3. Other assets

Current Assets are those that can be quickly converted into cash. They are short-term in nature. Hence bank balance (as AB mentions), cash in hand, accounts receivables etc are current assets.

Fixed Assets or non-current assets are long term in nature and cannot be converted into cash quickly. They could be furniture and fixtures, building & Property, machinery etc. [like AB mentions- Bangla (Penthouse), Gadi (Car)].

Assets can further be classified as:

  • Tangible
  • Intangible

Something that can be touched is tangible, while something that can’t be touched but is felt is intangible.

‘Mere pass Maa (Mother) hain’ [I have a mother] dialogue used by Ravi sounds more like goodwill. In accounts, Goodwill is a long term asset and is intangible in nature. It is generally shown on the assets side when the company makes any merger or acquisition. Hence it is more like an advantage to the business’s reputation.

Besides goodwill, there are other intangibles’ in business such as trademarks, copyrights, patents etc. SK uses ‘Maa’ as Goodwill. Though mother isn’t intangible, but ‘love of a mother’ (MAA ka Pyaar) is and that’s why this scene is so legendary.

P.S: One also needs to understand that the principles (Oosol and Aadarsh) that Ravi and AB are talking about are actually accounting principles ( GAAP and IFRS). It is amusing how comfortably these two men are talking about accounts.

Below is an example of assets in a business:

Understand with a Youtube Video:

Written by: Ms. Gitika Chandra


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