IFRS Defintions

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. (See IFRS 13 Fair Value Measurement.)

OR

The amount for which an asset could be exchanged, a liability settled, or an equity instrument granted could be exchanged, between knowledgeable, willing parties in an arm’s length transaction. (IFRS 2 Share-based payment)

OR

For the purpose of applying the lessor accounting requirements in IFRS 16, the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction. (IFRS 16 Leases)

The amount obtainable from the sale of an asset or cash-generating unit in an arm’s length transaction between knowledgeable, willing parties, less the costs of disposal.

A lease that transfers substantially all the risks and rewards incidental to ownership of an underlying asset.

A financial asset is any asset that is:

1. cash;
2. an equity instrument of another entity;
3. a contractual right:
   1. to receive cash or another financial asset from another entity; or
   2. to exchange financial assets or financial liabilities with another entity under conditions that are potentially favourable to the entity; or
4. a contract that will or may be settled in the entity’s own equity instruments and is:
   1. a non-derivative for which the entity is or may be obliged to receive a variable number of the entity’s own equity instruments; or
   2. a derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of the entity’s own equity

A contract that requires the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due in accordance with the original or modified terms of a debt instrument.

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

A financial liability is any liability that is:

1. a contractual obligation:
   1. to deliver cash or another financial asset to another entity; or
   2. to exchange financial assets or financial liabilities with another entity under conditions that are potentially unfavourable to the entity; or
2. a contract that will or may be settled in the entity’s own equity instruments and is:
   1. a non-derivative for which the entity is or may be obliged to deliver a variable number of the entity’s own equity instruments; or
   2. a derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of the entity’s own equity instruments. For this purpose, rights, options or

A financial liability that meets one of the following conditions:

1. it meets the definition of held for trading.
2. upon initial recognition it is designated by the entity as at fair value through profit or loss in accordance with paragraph 4.2.2 or 4.3.5.
3. it is designated either upon initial recognition or subsequently as at fair value through profit or loss in accordance with paragraph 6.7.1.

IFRS 9 Definition

The risk of a possible future change in one or more of a specified interest rate, financial instrument price, commodity price, currency exchange rate, index of prices or rates, credit rating or credit index or other variable, provided in the case of a non-financial variable that the variable is not specific to a party to the contract.

Financing activities are activities that result in changes in the size and composition of the contributed equity and borrowings of the entity.

A firm commitment is a binding agreement for the exchange of a specified quantity of resources at a specified price on a specified future date or dates.

An agreement with an unrelated party, binding on both parties and usually legally enforceable, that (a) specifies all significant terms, including the price and timing of the transactions, and (b) includes a disincentive for non-performance that is sufficiently large to make performance highly probable.

The first annual financial statements in which an entity adopts International Financial Reporting Standards (IFRSs), by an explicit and unreserved statement of compliance with IFRSs.

The latest reporting period covered by an entity’s first IFRS financial statements.

An entity that presents its first IFRS financial statements.

Payments made by a lessee to a lessor for the right to use an underlying asset during the lease term, excluding variable lease payments.

A forecast transaction is an uncommitted but anticipated future transaction.

Foreign currency is a currency other than the functional currency of the entity.

A transaction that is denominated in or requires settlement in a foreign currency.

Foreign operation is an entity that is a subsidiary, associate, joint arrangement or branch of a reporting entity, the activities of which are based or conducted in a country or currency other than those of the reporting entity.

Forgivable loans are loans which the lender undertakes to waive repayment of under certain prescribed conditions.

An explicit, unbiased and probability-weighted estimate (ie expected value) of the present value of the future cash outflows minus the present value of the future cash inflows that will arise as the entity fulfils insurance contracts, including a risk adjustment for non-financial risk.

Functional currency is the currency of the primary economic environment in which the entity operates.

Funding of retirement benefits

Funding is the transfer of assets to an entity (the fund) separate from the employer’s entity to meet future obligations for the payment of retirement benefits.