E

Definition

Either:

• (a) the period over which an asset is expected to be economically usable by one or more users; or
• (b) the number of production or similar units expected to be obtained from the asset by one or more users.

Definition

A method of calculating the amortised cost of a financial asset or a financial liability (or group of financial assets or financial liabilities) and of allocating the interest income or interest expense over the relevant period.

Definition

The rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument or, when appropriate, a shorter period to the net carrying amount of the financial asset or financial liability.

When calculating the effective interest rate, an entity shall estimate cash flows considering all contractual terms of the financial instrument (for example, prepayment, call and similar options) but shall not consider future credit losses.

The calculation includes all fees and points paid or received between parties to the contract that are an integral part of the effective interest rate (see IAS 18), transaction costs, and all other premiums or discounts.

There is a presumption that the cash flows and the expected life of a group of similar financial instruments can be estimated reliably. However, in those rare cases when it is not possible to estimate reliably the cash flows or the expected life of a financial instrument (or group of financial instruments), the entity shall use the contractual cash flows over the full contractual term of the financial instrument (or group of financial instruments).

Definition

A component of a hybrid (combined) instrument that also includes a non-derivative host contract—with the effect that some of the cash flows of the combined instrument vary in a way similar to a stand-alone derivative. An embedded derivative causes some or all of the cash flows that otherwise would be required by the contract to be modified according to 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. A derivative that is attached to a financial instrument but is contractually transferable independently of that instrument, or has a different counterparty from that instrument, is not an embedded derivative, but a separate financial instrument.

Definition

All forms of consideration given by an entity in exchange for service rendered by employees.

Definition

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

Definition

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

Definition

In IFRS 3 is used broadly to mean ownership interests of investor-owned entities and owner, member or participant interests of mutual entities.

Definition

A method of accounting whereby the investment is initially recognised at cost and adjusted thereafter for the post-acquisition change in the investor’s share of net assets of the investee. The profit or loss of the investor includes the investor’s share of the profit or loss of the investee.

Definition

A share-based payment transaction in which the entity receives goods or services as consideration for equity instruments of the entity (including shares or share options).

Definition

Those events, favourable and unfavourable, that occur between the end of the reporting period and the date when the financial statements are authorised for issue. Two types of events can be identified:

• (a) those that provide evidence of conditions that existed at the end of the reporting period (adjusting events after the reporting period); and
• (b) those that are indicative of conditions that arose after the reporting period (non-adjusting events after the reporting period).

Definition

The difference resulting from translating a given number of units of one currency into another currency at different exchange rates.

Definition

Decreases in economic benefits during the accounting period in the form of outflows or depletions of assets or incurrences of liabilities that result in decreases in equity, other than those relating to distributions to equity participants.