Definitions (see also paragraphs AG3–AG23) [further paragraphs]
12
The following terms are defined in Appendix A of AASB 9 or paragraph 9 of AASB 139 Financial Instruments: Recognition and Measurement and are used in this Standard with the meaning specified in AASB 139 and AASB 9.
• amortised cost of a financial asset or financial liability
• derecognition
• derivative
• effective interest method
• financial guarantee contract
• financial liability at fair value through profit or loss
• firm commitment
• forecast transaction
• hedge effectiveness
• hedged item
• hedging instrument
• held for trading
• regular way purchase or sale
• transaction costs.
13
In this Standard, ‘contract’ and ‘contractual’ refer to an agreement between two or more parties that has clear economic consequences that the parties have little, if any, discretion to avoid, usually because the agreement is enforceable by law. Contracts, and thus financial instruments, may take a variety of forms and need not be in writing.
14
In this Standard, ‘entity’ includes individuals, partnerships, incorporated bodies, trusts and government agencies.