Appendix A (AASB1061_04-26)

Monetary amounts in financial statements that are subject to measurement uncertainty. 

As set out in paragraph 9.2.

The business or businesses that the acquirer obtains control of in an entity combination.

The entity that obtains control of the acquiree. 

A market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. 

The systematic allocation of the depreciable amount of an intangible asset over its useful life. 

As set out in paragraph 13.4.

The amount at which an asset, liability or equity is recorded in the statement of financial position. 

Cash on hand and demand deposits.

As set out in paragraph 6.2. 

Inflows and outflows of cash and cash equivalents.

A grouping of assets of a similar nature or use in an entity’s operations.

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

Those family members who may be expected to influence, or be influenced by, that person in their dealings with the entity, including: 

(a) that person’s children and spouse or domestic partner; 

(b) children of that person’s spouse or domestic partner; and 

(c) dependants of that person or that person’s spouse or domestic partner.

(in Section 27: Related Party Disclosures)

Compensation includes all employee benefits (as defined in Section 23: Employee Benefits). 

As set out in paragraph 10.10.

As set out in paragraph 8.6.

As set out in paragraph 19.6.

As set out in paragraph 19.16.

As set out in paragraph 19.13.

The portion of the lease payments that is not fixed in amount but is based on the future amount of a factor that changes other than with the passage of time. 

An agreement between two or more parties that creates enforceable rights and obligations.

The rate that is specified in the loan agreement or other financial contract.

An investor controls an investee when it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. 

As set out in paragraph 22.8.

As set out in paragraph 11.9(b). 

A party that has contracted with an entity to obtain goods or services that are an output of the entity’s ordinary activities in exchange for consideration.

Post-employment benefit plans under which an entity pays fixed contributions into a separate entity (a fund) and will have no legal or constructive obligation to pay further contributions if the fund does not hold sufficient assets to pay all employee benefits relating to employee service in the current and prior periods. 

The cost of an asset, or other amount substituted for cost, less its residual value.

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

A financial instrument with all three of the following characteristics: 

(a) its value changes in response to the change in a specified interest rate, financial instrument price, commodity price, foreign exchange rate, index of prices or rates, credit rating or credit index, or other variable, provided in the case of a non-financial variable that the variable is not specific to a party to the contract (sometimes called the ‘underlying’); 

(b) it requires no initial net investment or an initial net investment that is smaller than would be required for other types of contracts that would be expected to have a similar response to changes in market factors; and 

(c) it is settled at a future date.

(in Section 16: Intangible Assets)

The application of research findings or other knowledge to a plan or design for the production of new or substantially improved materials, devices, productions, processes, systems or services before the start of commercial production or use.

The acquisition of an asset by the entity for a cost of nil, a nominal amount or another amount significantly less than the asset’s fair value, or a forgiveness (wholly or partially) of a liability owed by the entity.

As set out in paragraph 23.1.

A transaction or other event in which an acquirer obtains control of one or more entities or operating units. Transactions sometimes referred to as ‘true mergers’ or ‘mergers of equals’ are also entity combinations.

A contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.

As set out in paragraph 11.2. 

As set out in paragraph 2.2

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Any asset that is: 

(a) cash; 

(b) an equity instrument of another entity; 

(c) a contractual right: 

(i) to receive cash or another financial asset from another entity; or 

(ii) to exchange financial assets or financial liabilities with another entity under conditions that are potentially favourable to the entity; or 

(d) a contract that will or may be settled in the entity’s own equity instruments and is: 

(i) a non-derivative for which the entity is or may be obliged to receive a variable number of the entity’s own equity instruments; or 

(ii) a derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of the entity’s own equity instruments. For this purpose, the entity’s own equity instruments do not include instruments that are themselves contracts for the future receipt or delivery of the entity’s own equity instruments.

As set out in paragraph 10.1.

Any liability that is: 

(a) a contractual obligation: 

(i) to deliver cash or another financial asset to another entity; or 

(ii) to exchange financial assets or financial liabilities with another entity under conditions that are potentially unfavourable to the entity; or 

(b) a contract that will or may be settled in the entity’s own equity instruments and is: 

(i) a non-derivative for which the entity is or may be obliged to deliver a variable number of the entity’s own equity instruments; or 

(ii) a derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of the entity’s own equity instruments. For this purpose, rights, options or warrants to acquire a fixed number of the entity’s own equity instruments for a fixed amount of any currency are equity instruments if the entity offers the rights, options or warrants pro rata to all of its existing owners of the same class of its own non-derivative equity instruments. Also, for this purpose, the entity’s own equity instruments do not include instruments that are themselves contracts for the future receipt or delivery of the entity’s own equity instruments.

The relationship of the income and expenses of an entity as reported in the statement(s) of financial performance.

The relationship of the assets, liabilities and equity of an entity as reported in the statement of financial position. 

A structured representation of the financial position, financial performance and cash flows of an entity.

Activities that result in changes in the size and composition of the contributed equity and borrowings of the entity.

As defined in paragraph 28.1.

Financial statements that are intended to meet the needs of users who are not in a position to require an entity to prepare reports tailored to their particular information needs. 

As set out in paragraph 2.6.

Government, government agencies and similar bodies whether local, national or international.

The use of a non-financial asset that would provide maximum value to market participants through its use or in combination with other assets and liabilities (eg operating unit). 

Significantly more likely than probable. 

Applying a requirement is impracticable when the entity cannot apply it after making every reasonable effort to do so. 

All domestic and foreign taxes that are based on taxable profits. Income taxes also include taxes, such as withholding taxes, that are payable by a subsidiary, associate, joint arrangement or notable relationship entity on distributions to the reporting entity. 

As set out in paragraph 16.2.

As set out in paragraph 12.1.

Assets: 

(a) held for distribution at no or nominal consideration in the ordinary course of operations; 

(b) in the process of production for distribution at no or nominal consideration in the ordinary course of operations; or 

(c) in the form of materials or supplies to be consumed in the production process or in the rendering of services at no or nominal consideration.

The acquisition and disposal of long-term assets and other investments not included in cash equivalents.

As set out in paragraph 14.2. 

As set out in paragraph 13.10.

As set out in paragraph 13.8. 

Persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity.

A contract, or part of a contract, that conveys the right to use an asset (the underlying asset) for a period of time in exchange for consideration.

The non-cancellable period for which a lessee has the right to use an underlying asset, together with both: 

(a) periods covered by an option to extend the lease if the lessee is reasonably certain to exercise that option; and 

(b) periods covered by an option to terminate the lease if the lessee is reasonably certain not to exercise that option.

Financial liabilities other than short-term trade payables on normal credit terms.

Buyers and sellers in the principal (or most advantageous) market for the asset or liability that have all of the following characteristics: 

(a) they are independent of each other, ie they are not related parties as defined in Section 27: Related Party Disclosures, although the price in a related party transaction may be used as an input to a fair value measurement if the entity has evidence that the transaction was entered into at market terms; 

(b) they are knowledgeable, having a reasonable understanding about the asset or liability and the transaction using all available information, including information that might be obtained through due diligence efforts that are usual and customary; 

(c) they are able to enter into a transaction for the asset or liability; and 

(d) they are willing to enter into a transaction for the asset or liability, ie they are motivated but not forced or otherwise compelled to do so.

As set out in paragraph 2.15.

As set out in paragraph 9.16.

The payments over the lease term that the lessee is or can be required to make, excluding contingent rent, costs for services and taxes to be paid by and reimbursed to the lessor, together with: 

(a) for a lessee, any amounts guaranteed by the lessee or by a party related to the lessee; or 

(b) for a lessor, any residual value guaranteed to the lessor by: 

(i) the lessee; 

(ii) a party related to the lessee; or 

(iii) a third party unrelated to the lessor that is financially capable of discharging the obligations under the guarantee.

As set out in paragraph 9.10. 

The estimated selling price less costs to complete and sell.

The equity in a subsidiary not attributable, directly or indirectly, to a parent. 

Non-current assets whose carrying amount will be recovered principally through a sale transaction rather than through continuing use. For this to be the case, the asset must be available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets and its sale must be highly probable.

A not-for-profit entity is an entity whose principal objective is not the generation of profit. A not-for-profit entity can be a single entity or a group of entities comprising the parent entity and each of the entities that it controls.

As set out in paragraphs 7.1–7.2. 

As set out in paragraph 8.4.

As set out in paragraph 8.4.

Inputs that are developed using market data, such as publicly available information about actual events or transactions, and that reflect the assumptions that market participants would use when pricing the asset or liability. 

Presenting an asset and liability recorded and measured as separate units of account as a single net asset or liability.

The principal revenue-producing activities of the entity and other activities that are not investing or financing activities.

As set out in paragraph 17.4.

A transaction that assumes exposure to the market for a period before the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets or liabilities; it is not a forced transaction (eg a forced liquidation or distress sale).

An equity instrument that is subordinate to all other classes of equity instruments.

Items of income and expense that are recorded outside profit or loss as required or permitted by this Standard.

Holders of equity instrument of the entity. 

Property held for use in the production or supply of goods or services or for administrative purposes.

An entity that has one or more subsidiaries. 

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

As set out in paragraph 9.21.

More likely than not. 

The total of income less expenses, excluding the components of other comprehensive income.

As set out in paragraph 15.2.

Applying a new accounting policy to transactions, other events and conditions occurring after the date at which the policy is changed, and recording the effect of a change in an accounting estimate in the current and future periods affected by the change.

As set out in paragraph 19.3.

An entity has public accountability if: 

(a) its debt or equity instruments are traded in a public market or it is in the process of issuing such instruments for trading in a public market (a domestic or foreign stock exchange or an over-the-counter market, including local and regional markets); or 

(b) it holds assets in a fiduciary capacity for a broad group of outsiders as one of its primary businesses.

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. Recording (recognising) 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.

As set out in paragraphs 22.5 and 22.7 

As set out in paragraphs 27.3–27.5.

As set out in paragraph 27.8.  

The activities of the investee that significantly affect the investee’s returns. 

The end of the current period covered by the financial statements.

The period covered by the financial statements. 

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

The estimated amount that an entity would currently obtain from disposal of an 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. 

As set out in paragraph 20.1.

As set out in paragraph 8.29.

In respect of not-for-profit entities, in pursuing their objectives, goods and services are provided that have the capacity to satisfy human wants and needs. Assets provide a means for entities to achieve their objectives. The potential to produce economic benefits is the essence of assets and is synonymous with the notion of service potential, and is used in the Conceptual Framework for Financial Reporting as a reference also to service potential. The potential to produce economic benefits can be described as the scarce capacity to provide benefits to the entities that use them in pursing their objectives, and is common to all assets irrespective of their physical or other form. 

As set out in paragraph 13.5.

As set out in paragraph 6.1.

As set out in paragraph 5.2.

As set out in paragraph 4.8.

As set out in paragraph 4.1. 

As set out in paragraph 3.1. 

As set out in paragraph 5.4.

As set out in paragraph 4.2(b).

As set out in paragraph 4.2(a). 

An entity that: 

(a) does not have public accountability; and 

(b) is not prohibited from applying Tier 3 reporting requirements by legislation or its constituting document or another document.

As set out in paragraph 4.3.

A transferor of cash or another asset to the entity such as: 

(a) a customer, who has contracted with the entity to obtain goods or services in exchange for consideration; or 

(b) a funding provider.

The costs that would be incurred to transport an asset from its current location to its principal (or most advantageous) market. A principal market is the market with the greatest volume and level of activity for the asset or liability.

Inputs for which market data are not available and that are developed using the best information available about the assumptions that market participants would use when pricing the asset or liability. 

The period over which an asset is expected to be available for use by an entity or the number of production or similar units expected to be obtained from the asset by an entity.

As set out in paragraph 22.9.