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

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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