Appendix -- Defined terms (Conceptual_Framework_05-19_COMPmar20_07-21)

The following defined terms are extracted or derived from the relevant paragraphs of the Conceptual Framework for Financial Reporting.

The adding together of assets, liabilities, equity, income or expenses that have shared characteristics and are included in the same classification. CF.7.20

A present economic resource controlled by the entity as a result of past events.  CF.4.3

The amount at which an asset, a liability or equity is recognised in the statement of financial position.  CF.5.1

The sorting of assets, liabilities, equity, income or expenses on the basis of shared characteristics for presentation and disclosure purposes.  CF.7.7

Financial statements of a reporting entity that comprises two or more entities that are not all linked by a parent-subsidiary relationship.  CF.3.12

Financial statements of a reporting entity that comprises both the parent and its subsidiaries.  CF.3.11

The present ability to direct the use of the economic resource and obtain the economic benefits that may flow from it.  CF.4.20

The removal of all or part of a recognised asset or liability from an entity’s statement of financial position.  CF.5.26

A right that has the potential to produce economic benefits.  CF.4.4

A qualitative characteristic that makes useful information more useful. The enhancing qualitative characteristics are comparability, verifiability, timeliness and understandability.  CF.2.4, CF.2.23

The residual interest in the assets of the entity after deducting all its liabilities.  CF.4.63

A claim on the residual interest in the assets of the entity after deducting all its liabilities.  CF.4.64

A contract, or a portion of a contract, that is equally unperformed—neither party has fulfilled any of its obligations, or both parties have partially fulfilled their obligations to an equal extent.  CF.4.56

Uncertainty about whether an asset or liability exists.  CF.4.13, CF.4.35

Decreases in assets, or increases in liabilities, that result in decreases in equity, other than those relating to distributions to holders of equity claims.  CF.4.69

A qualitative characteristic that financial information must possess to be useful to the primary users of general purpose financial reports. The fundamental qualitative characteristics are relevance and faithful representation.  CF.2.4, CF.2.5

A report that provides financial information about the reporting entity’s economic resources, claims against the entity and changes in those economic resources and claims that is useful to primary users in making decisions relating to providing resources to the entity.  CF.1.2, CF.1.12

A particular form of general purpose financial reports that provide information about the reporting entity’s assets, liabilities, equity, income and expenses.  CF.3.2

Increases in assets, or decreases in liabilities, that result in increases in equity, other than those relating to contributions from holders of equity claims.  CF.4.68

A present obligation of the entity to transfer an economic resource as a result of past events.  CF.4.26

Information whose omission or misstatement could influence decisions that the primary users of general purpose financial reports make on the basis of those reports, which provide financial information about a specific reporting entity.  CF.2.11

The result of applying a measurement basis to an asset or liability and related income and expenses.  CF.6.1

An identified feature—for example, historical cost, fair value or fulfilment value—of an item being measured.  CF.6.1

Uncertainty that arises when monetary amounts in financial reports cannot be observed directly and must instead be estimated.  CF.2.19

Grouping an asset and liability that are recognised and measured as separate units of account into a single net amount in the statement of financial position.  CF.7.10

Uncertainty about the amount or timing of any inflow or outflow of economic benefits that will result from an asset or liability.  CF.6.61

Within an economic resource, a feature that already exists and that, in at least one circumstance, would produce for the entity economic benefits beyond those available to all other parties.  CF.4.14

Existing and potential investors, lenders and other creditors.  CF.1.2

The exercise of caution when making judgements under conditions of uncertainty. The exercise of prudence means that assets and income are not overstated and liabilities and expenses are not understated. Equally, the exercise of prudence does not allow for the understatement of assets or income or the overstatement of liabilities or expenses.  CF.2.16

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. Recognition involves depicting the item in one of those statements—either alone or in aggregation with other items—in words and by a monetary amount, and including that amount in one or more totals in that statement.  CF.5.1

An entity that is required, or chooses, to prepare general purpose financial statements.  CF.3.10

Financial statements of a reporting entity that is the parent alone.  CF.3.11

The right or the group of rights, the obligation or the group of obligations, or the group of rights and obligations, to which recognition criteria and measurement concepts are applied.  CF.4.48

Financial information that is useful to primary users of general purpose financial reports in making decisions relating to providing resources to the reporting entity. To be useful, financial information must be relevant and faithfully represent what it purports to represent.  CF.1.2, CF.2.4

See primary users (of general purpose financial reports).