Can you give me an example of an asset that is not recorded on the balance sheet, what is the argument in this case? and do you know a company which has an asset not reported on a balance sheet!

YES , I think you might be referring to what is known as an INTANGIBLE
ASSET. It is referred to as GOODWILL.
Most companies have a very good name , this good name is called
Goodwill.
These Companies prefer to leave this out of their balance sheets because they have not actually purchased it.
When the Company purchases the
Goodwill then this is usually shown.

An asset that is not recorded on the balance sheet does not neccessairly mean that it is intangible. It can be a tangible asset too i.e. the workforce/managers. High quality managers are said to be of an asset to the business. They are tangible. They provide future economic benefit also to the business potentially and they are considered as an asset to the business. However for an asset to appear on the balance sheet it has to go through another test etc.etc.

These assets do not appear on the balance sheet as they have a degree of HIGH UNCERTAINTY.

Refer to your accounting textbook powerish.. you may find that this will help you in your coursework... haha