The future economic benefit embodied in an asset is the potential to contribute, directly or indirectly, to the flow of cash and cash equivalents to the entity. OR In respect of not-for-profit entities, whether in the public or private sector, the future economic benefits are also used to provide goods and services in accordance with the entities' objectives.

LGAM

The future economic benefit embodied in an asset is the potential to conhibute directly, or indirectly, to the flow of cash or cash equivalents to the entity. The potential may be a productive one that is part of the operating activities of the entity. It may also take the form of convertibility into cash or cash equivalents or a capability to reduce cash outflows. For not-for-profit entities, whether in the public or private sector, the future economic benefits are also used to provide goods and services in accordance with the entity's objectives. Future economic benefits me synonymous with the notion of service potential and are used as a refcrence also to service potential. Future economic benefits can be described as the scarce capacity to provide benefits to the entities that use them and is common to all assets irrespective of their physical or other form.

AIFMG 2009

A degradation curve is a graph of an asset's condition or remaining service potential plotted over time.

LGAM