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 entity that controls one or more entities.





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Participants are the members of a retirement benefit plan and others who are entitled to benefits under the plan.





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Past due

A financial asset is past due when a counterparty has failed to make a payment when that payment was contractually due.





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Past service cost

The change in the present value of the defined benefit obligation for employee service in prior periods, resulting from a plan amendment (the introduction or withdrawal of, or changes to, a defined benefit plan) or a curtailment (a significant reduction by the entity in the number of employees covered by a plan).





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Performance condition

A vesting condition that requires:

  1. the counterparty to complete a specified period of service (ie a service condition); the service requirement can be explicit or implicit; and
  2. specified performance target(s) to be met while the counterparty is rendering the service required in (a).

The period of achieving the performance target(s):

  1. shall not extend beyond the end of the service period; and
  2. may start before the service period on the condition that the commencement date of the performance target is not substantially before the commencement of the service period.

A performance target is defined by reference to:

  1. the entity’s own operations (or activities) or the operations or activities of another entity in the same group (ie a non-market condition); or
  2. the
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Performance obligation

A promise in a contract with a customer to transfer to the customer either:

  1. a good or service (or a bundle of goods or services) that is  distinct; or
  2. a series of distinct goods or services that are substantially the same and that have the same pattern of transfer to the customer.




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Period of use

The total period of time that an asset is used to fulfil a contract with a customer (including any non-consecutive periods of time).





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Plan assets

Plan assets of an employee benefit plan – Definitions relating to the net defined benefit liability (asset)

Plan assets comprise:

  1. assets held by a long-term employee benefit fund; and
  2. qualifying insurance policies.




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A party that has a right to compensation under an insurance contract if an insured event occurs.





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Post-employment benefit plans

Post-employment benefit plans are formal or informal arrangements under which an entity provides post-employment benefits for one or more employees.





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Post-employment benefits

Post-employment benefits are employee benefits (other than termination benefits and short-term employee benefits) that are payable after the completion of employment.





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Potential ordinary share

A potential ordinary share is a financial instrument or other contract that may entitle its holder to ordinary shares.





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Existing rights that give the current ability to direct the relevant activities.





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Present value of a defined benefit obligation

Definitions relating to the net defined benefit liability (asset)

The present value of a defined benefit obligation is the present value, without deducting any plan assets, of expected future payments required to settle the obligation resulting from employee service in the current and prior periods.





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Previous GAAP

The basis of accounting that a first-time adopter used immediately before adopting IFRSs.





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Primary users


Primary users of general purpose financial reports –

Existing and potential investors, lenders and other creditors.



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Principal market

The market with the greatest volume and level of activity for the asset or liability.





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Prior period errors

Prior period errors are omissions from, and misstatements in, the entity’s financial statements for one or more prior periods arising from a failure to use, or misuse of, reliable information that:
(a) was available when financial statements for those periods were authorised for issue; and
(b) could reasonably be expected to have been obtained and taken into account in the preparation and presentation of those financial statements.

Such errors include the effects of mathematical mistakes, mistakes in applying accounting policies, oversights or misinterpretations of facts, and fraud.





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Profit or loss

Profit or loss is the total of income less expenses, excluding the components of other comprehensive income.





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Property, plant and equipment

Property, plant and equipment are tangible items that:

  1. are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes; and
  2. are expected to be used during more than one period.




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Prospective application

Prospective application of a change in accounting policy and of recognising the effect of a change in an accounting estimate, respectively, are:

  1. applying the new accounting policy to transactions, other events and conditions occurring after the date as at which the policy is changed; and
  2. recognising the effect of the change in the accounting estimate in the current and future periods affected by the change.




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Protective rights

Rights designed to protect the interest of the party holding those rights without giving that party power over the entity to which those rights relate.





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A provision is a liability of uncertain timing or amount.





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Put options

Put options on ordinary shares are contracts that give the holder the right to sell ordinary shares at a specified price for a given period.





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Puttable instrument

A puttable instrument is a financial instrument that gives the holder the right to put the instrument back to the issuer for cash or another financial asset or is automatically put back to the issuer on the occurrence of an uncertain future event or the death or retirement of the instrument holder.


A puttable instrument is a financial instrument which includes a contractual obligation for the issuer to repurchase or redeem that instrument for cash or another financial asset on exercise of the put.





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