IFRS Defintions

Accounting policies are the specific principles, bases, conventions, rules and practices applied by an entity in preparing and presenting financial statements.

Accounting profit is profit or loss for a period before deducting tax expense.

The business or businesses that the acquirer obtains control of in a business combination.

The entity that obtains control of the acquiree.

The date on which the acquirer obtains control of the acquiree.

A market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis.

Definitions relating to defined benefit cost

Actuarial gains and losses are changes in the present value of the defined benefit obligation resulting from:
(a) experience adjustments (the effects of differences between the previous actuarial assumptions and what has actually occurred); and
(b) the effects of changes in actuarial assumptions.

Actuarial present value of promised retirement benefits is the present value of the expected payments by a retirement benefit plan to existing and past employees, attributable to the service already rendered.

Adjusting events after the reporting period – An entity shall adjust the amounts recognised in its financial statements to reflect adjusting events after the reporting period.

Agricultural activity is the management by an entity of the biological transformation and harvest of biological assets for sale or for conversion into agricultural produce or into additional biological assets.

Agricultural produce is the harvested produce of the entity’s biological assets.

Depreciation (Amortisation) is the systematic allocation of the depreciable amount of an asset over its useful life¹.

1 In the case of an intangible asset, the term ‘amortisation’ is generally used instead of ‘depreciation’. The two terms have the same meaning.

OR

Amortisation is the systematic allocation of the depreciable amount of an intangible asset over its useful life.

The amount at which the financial asset or financial liability is measured at initial recognition minus the principal repayments, plus or minus the cumulative amortisation using the effective interest method of any difference between that initial amount and the maturity amount and, for financial assets, adjusted for any loss allowance.

Antidilution is an increase in earnings per share or a reduction in loss per share resulting from the assumption that convertible instruments are converted, that options or warrants are exercised, or that ordinary shares are issued upon the satisfaction of specified conditions.

An asset is a resource:

1. controlled by an entity as a result of past events; and
2. from which future economic benefits are expected to flow to the entity.

Definitions relating to the net defined benefit liability (asset)

The asset ceiling is the present value of any economic benefits available in the form of refunds from the plan or reductions in future contributions to the plan.

Definitions relating to the net defined benefit liability (asset)

Assets held by a long-term employee benefit fund are assets (other than non-transferable financial instruments issued by the reporting entity) that:

1. are held by an entity (a fund) that is legally separate from the reporting entity and exists solely to pay or fund employee benefits; and
2. are available to be used only to pay or fund employee benefits, are not available to the reporting entity’s own creditors (even in bankruptcy), and cannot be returned to the reporting entity, unless either:
   1. the remaining assets of the fund are sufficient to meet all the related employee benefit obligations of the plan or the reporting entity; or
   2. the assets are returned to the reporting

An associate is an entity over which the investor has significant influence.