1 A B C D E F G H I J K L M N O P Q R S T U V W


An asset is identifiable if it either:

  1. is separable, ie capable of being separated or divided from the entity and sold, transferred, licensed, rented or exchanged, either individually or together with a related contract, identifiable asset or liability, regardless of whether the entity intends to do so; or
  2. arises from contractual or other legal rights, regardless of whether those rights are transferable or separable from the entity or from other rights and obligations.




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Impairment gain or loss

Gains or losses that are recognised in profit or loss in accordance with paragraph 5.5.8 and that arise from applying the impairment requirements in Section 5.5.

IFRS 9 Definition





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Impairment loss

An impairment loss is the amount by which the carrying amount of an asset exceeds its recoverable amount.





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Applying a requirement is impracticable when the entity cannot apply it after making every reasonable effort to do so.


Applying a requirement is impracticable when the entity cannot apply it after making every reasonable effort to do so. For a particular prior period, it is impracticable to apply a change in an accounting policy retrospectively or to make a retrospective restatement to correct an error if:

  1. the effects of the retrospective application or retrospective restatement are not determinable;
  2. the retrospective application or retrospective restatement requires assumptions about what management’s intent would have been in that period; or
  3. the retrospective application or retrospective restatement requires significant estimates of amounts and it is impossible to distinguish objectively information about those estimates
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Applying a requirement is impracticable when an entity cannot apply it after making every reasonable effort to do so.





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Inception date of the lease

The earlier of the date of a lease agreement and the date of commitment by the parties to the principal terms and conditions of the lease.





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Increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in an increase in equity, other than those relating to contributions from equity participants.





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Income approach

Valuation techniques that convert future amounts (eg cash flows or income and expenses) to a single current (ie discounted) amount. The fair value measurement is determined on the basis of the value indicated by current market expectations about those future amounts.





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Income from a structured entity

For the purpose of this IFRS (editor IFRS 12), income from a structured entity includes, but is not limited to, recurring and non-recurring fees, interest, dividends, gains or losses on the remeasurement or derecognition of interests in structured entities and gains or losses from the transfer of assets and liabilities to the structured entity.





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Initial direct costs

Incremental costs of obtaining a lease that would not have been incurred if the lease had not been obtained, except for such costs incurred by a manufacturer or dealer lessor in connection with a finance lease.





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The assumptions that market participants would use when pricing the asset or liability, including assumptions about risk, such as the following:

  1. the risk inherent in a particular valuation technique used to measure fair value (such as a pricing model); and
  2. the risk inherent in the inputs to the valuation technique.

Inputs may be observable or unobservable.





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Insurance acquisition cash flows

Cash flows arising from the costs of selling, underwriting and starting a group of insurance contracts that are directly attributable to the portfolio of insurance contracts to which the group belongs. Such cash flows include cash flows that are not directly attributable to individual contracts or groups of insurance contracts within the portfolio.





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Insurance contract

A contract under which one party (the issuer) accepts significant insurance risk from another party (the policyholder) by agreeing to compensate the policyholder if a specified uncertain future
event (the insured event) adversely affects the policyholder.





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Insurance contract with direct participation features

An insurance contract for which, at inception:

  1. the contractual terms specify that the policyholder participates in a share of a clearly identified pool of underlying items;
  2. the entity expects to pay to the policyholder an amount equal to a substantial share of the fair value returns on the underlying items; and
  3. the entity expects a substantial proportion of any change in the amounts to be paid to the policyholder to vary with the change in fair value of the underlying items.




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Insurance risk

Risk, other than financial risk, transferred from the holder of a contract to the issuer.





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Insured event

An uncertain future event covered by an insurance contract that creates insurance risk.





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Intangible asset

An intangible asset is an identifiable non-monetary asset without physical substance.





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Interest in another entity

For the purpose of this IFRS, an interest in another entity refers to contractual and non-contractual involvement that exposes an entity to variability of returns from the performance of the other entity. An interest in another entity can be evidenced by, but is not limited to, the holding of equity or debt instruments as well as other forms of involvement such as the provision of funding, liquidity support, credit enhancement and guarantees. It includes the means by which an entity has control or joint control of, or significant influence over, another entity. An entity does not necessarily have an interest in another entity solely because of a typical customer supplier relationship.

Paragraphs B7–B9 provide further information about interests in other … Read more

Interest rate implicit in the lease

The rate of interest that causes the present value of (a) the lease payments and (b) the unguaranteed residual value to equal the sum of (i) the fair value of the underlying asset and (ii) any initial direct costs of the lessor.





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Interest rate risk

The risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.





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Interim financial report

Interim financial report means a financial report containing either a complete set of financial statements (as described in IAS 1 Presentation of Financial Statements (as revised in 2007)) or a set of condensed financial statements (as described in this Standard) for an interim period.





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Interim period

Interim period is a financial reporting period shorter than a full financial year.





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Internal carbon price

Price used by an entity to assess the financial implications of changes to investment, production and consumption patterns, and of potential technological progress and future emissions- abatement costs. An entity can use internal carbon prices for a range of business applications. Two types of internal carbon prices that an entity commonly uses are:

  1. a shadow price, which is a theoretical cost or notional amount that the entity does not charge but that can be used to understand the economic implications or trade- offs for such things as risk impacts, new investments, the net present value of projects, and the cost and benefit of various initiatives; and
  2. an internal tax or fee, which is a carbon price charged to a business
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Intrinsic value

The difference between the fair value of the shares to which the counterparty has the (conditional or unconditional) right to subscribe or which it has the right to receive, and the price (if any) the counterparty is (or will be) required to pay for those shares. For example, a share option with an exercise price of CU15, on a share with a fair value of CU20, has an intrinsic value of CU5.





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Inventories are assets: (a) held for sale in the ordinary course of business; (b) in the process of production for such sale; or (c) in the form of materials or supplies to be consumed in the production process or in the rendering of services.





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Investing activities

Investing activities are the acquisition and disposal of long-term assets and other investments not included in cash equivalents.





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Investment component

The amounts that an insurance contract requires the entity to repay to a policyholder even if an insured event does not occur.





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Investment contract with discretionary participation features

A financial instrument that provides a particular investor with the contractual right to receive, as a supplement to an amount not subject to the discretion of the issuer, additional amounts:

  1. that are expected to be a significant portion of the total contractual benefits;
  2. the timing or amount of which are contractually at the discretion of the issuer; and
  3. that are contractually based on:
    1. the returns on a specified pool of contracts or a specified type of contract;
    2. realised and/or unrealised investment returns on a specified pool of assets held by the issuer; or
    3. the profit or loss of the entity or fund that issues the contract.



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Investment entity

An entity that:

  1. obtains funds from one or more investors for the purpose of providing those investor(s) with investment management services;
  2. commits to its investor(s) that its business purpose is to invest funds solely for returns from capital appreciation, investment income, or both; and
  3. measures and evaluates the performance of




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Investment property

Investment property is held to earn rentals or for capital appreciation or both. Therefore, an investment property generates cash flows largely independently of  the other assets held by an entity. This distinguishes investment property from owner-occupied property. The production or supply of goods or services (or the  use of property for administrative purposes) generates cash flows that are attributable not only to property, but also to other assets used in the production or supply process. IAS 16 applies to owned owner-occupied property and IFRS 16 applies to owner-occupied property held by a lessee as a right-of-use asset.

For example, if an entity owns and manages a hotel, services provided to guests are significant to the arrangement as a whole. Therefore, … Read more


The issuer is the entity which issues the instrument (not the holder). In the context of borrowings, the issuer will be the borrower.





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