Definitions
6
The following terms are used in this Standard with the meanings specified:
6[1]
Carrying amount is the amount at which an asset is recognised after deducting any accumulated depreciation (amortisation) and accumulated impairment losses thereon.
6[2]
A cash-generating unit is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.
6[3]
Corporate assets are assets other than goodwill that contribute to the future cash flows of both the cash-generating unit under review and other cash-generating units.
6[4]
Costs of disposal are incremental costs directly attributable to the disposal of an asset or cash-generating unit, excluding finance costs and income tax expense.
6[5]
Depreciable amount is the cost of an asset, or other amount substituted for cost in the financial statements, less its residual value.
6[6]
Depreciation (Amortisation) is the systematic allocation of the depreciable amount of an asset over its useful life.[1]
In the case of an intangible asset, the term ‘amortisation’ is generally used instead of ‘depreciation’. The two terms have the same meaning.
6[7]
Fair value is 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. (See AASB 13 Fair Value Measurement.)
6[8]
An impairment loss is the amount by which the carrying amount of an asset or a cash-generating unit exceeds its recoverable amount.
6[9]
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.
6[10]
Useful life is either:
(a) the period of time over which an asset is expected to be used by the entity; or
(b) the number of production or similar units expected to be obtained from the asset by the entity.
6[11]
Value in use is the present value of the future cash flows expected to be derived from an asset or cash-generating unit.