Reclassification adjustments

Reclassification adjustments are amounts reclassified to profit or loss in the current period that were recognised in other comprehensive income in the current or previous periods.

 

 

 

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Reclassification date

The first day of the first reporting period following the change in business model that results in an entity reclassifying financial assets.

 

 

 

 

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Recognition

Recognition is the process of capturing for inclusion in the statement of financial position or the statement(s) of financial performance an item that meets the definition of one of the elements of financial statements—an asset, a liability, equity, income or expenses.

 

 

 

 

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Recoverable amount

The recoverable amount of an asset or a cash-generating unit is the higher of its fair value less costs of disposal and its value in use. (IAS 16 6, IAS 36 6, IFRS 5 Appendix A Definitions)

 

 

 

 

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Regular way purchase or sale

A purchase or sale of a financial asset under a contract whose terms require delivery of the asset within the time frame established generally by regulation or convention in the marketplace concerned.

 

 

 

 

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Reinsurance contract

An insurance contract issued by one entity (the reinsurer) to compensate another entity for claims arising from one or more insurance contracts issued by that other entity (underlying contracts).

 

 

 

 

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Related party

A related party is a person or entity that is related to the entity that is preparing its financial statements (in this Standard (IAS 24) referred to as the ‘reporting entity’).

  1. A person or a close member of that person’s family is related to a reporting entity if that person:
    1. has control or joint control of the reporting entity;
    2. has significant influence over the reporting entity; or
    3. is a member of the key management personnel of the reporting entity or of a parent of the reporting entity.
  2. An entity is related to a reporting entity if any of the following conditions applies:
    1. The entity and the reporting entity are members of the same group (which means that each parent, subsidiary
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Related party transaction

A related party transaction is a transfer of resources, services or obligations between a reporting entity and a related party, regardless of whether a price is charged.

 

 

 

 

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Relevant activities

For the purpose of this IFRS (editor: IFRS 10), relevant activities are activities of the investee that significantly affect the investee’s returns.

 

 

 

 

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Reload feature

A feature that provides for an automatic grant of additional share options whenever the option holder exercises previously granted options using the entity’s shares, rather than cash, to satisfy the exercise price.

 

 

 

 

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Reload option

A new share option granted when a share is used to satisfy the exercise price of a previous share option.

 

 

 

 

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Remeasurements of the net defined benefit liability (asset)

Definitions relating to defined benefit cost

Remeasurements of the net defined benefit liability (asset) comprise:

  1. actuarial gains and losses;
  2. the return on plan assets, excluding amounts included in net interest on the net defined benefit liability (asset); and
  3. any change in the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability (asset).

 

 

 

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Research

Research is original and planned investigation undertaken with the prospect of gaining new scientific or technical knowledge and understanding.

 

 

 

 

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Residual value

The residual value of an asset is the estimated amount that an entity would currently obtain from disposal of the asset, after deducting the estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

 

 

 

 

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Residual value guarantee

A guarantee made to a lessor by a party unrelated to the lessor that the value (or part of the value) of an underlying asset at the end of a lease will be at least a specified amount.

 

 

 

 

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Restructuring

A restructuring is a programme that is planned and controlled by management, and materially changes either:

  1. the scope of a business undertaken by an entity; or
  2. the manner in which that business is conducted.

 

 

 

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Retirement benefit plans

Retirement benefit plans are arrangements whereby an entity provides benefits for employees on or after termination of service (either in the form of an annual income or as a lump sum) when such benefits, or the contributions towards them, can be determined or estimated in advance of retirement from the provisions of a document or from the entity’s practices.

 

 

 

 

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Retrospective application

Retrospective application is applying a new accounting policy to transactions, other events and conditions as if that policy had always been applied.

 

 

 

 

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Retrospective restatement

Retrospective restatement is correcting the recognition, measurement and disclosure of amounts of elements of financial statements as if a prior period error had never occurred.

 

 

 

 

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Return on plan assets

Return on plan assets of an employee benefit plan – Definitions relating to defined benefit cost

The return on plan assets is interest, dividends and other income derived from the plan assets, together with realised and unrealised gains or losses on the plan assets, less:

  1. any costs of managing plan assets; and
  2. any tax payable by the plan itself, other than tax included in the actuarial assumptions used to measure the present value of the defined benefit obligation.

 

 

 

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Revenue

Income arising in the course of an entity’s ordinary activities.

 

 

 

 

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Risk adjustment for non-financial risk

The compensation an entity requires for bearing the uncertainty about the amount and timing of the cash flows that arises from non-financial risk as the entity fulfils insurance contracts.

 

 

 

 

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Risk premium

Compensation sought by risk‑averse market participants for bearing the uncertainty inherent in the cash flows of an asset or a liability. Also referred to as a ‘risk adjustment’.

 

 

 

 

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