Under a financial concept of capital, such as invested money or invested purchasing power, the net assets or equity of the entity. The financial concept of capital is adopted by most entities. Under a physical concept of capital, such as operating capability, the productive capacity of the entity based on, for example, units of output per day.

Recognising a cost as part of the cost of an asset.

The amount at which an asset is recognised after deducting any accumulated depreciation (amortisation) and accumulated impairment losses thereon.

The amount at which an asset is recognised in the statement of financial position.

Cash on hand and demand deposits.

Short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

Inflows and outflows of cash and cash equivalents.

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.

A share-based payment transaction in which the entity acquires goods or services by incurring a liability to transfer cash or other assets to the supplier of those goods or services for amounts that are based on the price (or value) of the entity’s shares or other equity instruments of the entity.

The policyholder under a reinsurance contract.

An adjustment of the carrying amount of an asset or a liability, or the amount of the periodic consumption of an asset, that results from the assessment of the present status of, and expected future benefits and obligations associated with, assets and liabilities. Changes in accounting estimates result from new information or new developments and, accordingly, are not corrections of errors.

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

Grouping of financial instruments that is appropriate to the nature of the information disclosed and that takes into account the characteristics of those financial instruments.

The spot exchange rate at the end of the reporting period.

Includes all employee benefits (as defined in IAS 19) including employee benefits to which IFRS 2 applies. Employee benefits are all forms of consideration paid, payable or provided by the entity, or on behalf of the entity, in exchange for services rendered to the entity. It also includes such consideration paid on behalf of a parent of the entity in respect of the entity. Compensation includes:

• (a) short-term employee benefits, such as wages, salaries and social security contributions, paid annual leave and paid sick leave, profit-sharing and bonuses (if payable within twelve months of the end of the period) and non-monetary benefits (such as medical care, housing, cars and free or subsidised goods or services) for current employees;
• (b) post-employment benefits such as pensions, other retirement benefits, post-employment life insurance and post-employment medical care;
• (c) other long-term employee benefits, including long-service leave or sabbatical leave, jubilee or other long-service benefits, long-term disability benefits and, if they are not payable wholly within twelve months after the end of the period, profit-sharing, bonuses and deferred compensation;
• (d) termination benefits; and
• (e) share-based payment.

Operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the entity.

A financial instrument that, from the issuer’s perspective, contains both a liability and an equity element.

The financial statements of a group presented as those of a single economic entity.

A contract specifically negotiated for the construction of an asset or a combination of assets that are closely interrelated or interdependent in terms of their design, technology and function or their ultimate purpose or use.

An obligation that derives from an entity’s actions where:

• (a) by an established pattern of past practice, published policies or a sufficiently specific current statement, the entity has indicated to other parties that it will accept certain responsibilities; and
• (b) as a result, the entity has created a valid expectation on the part of those other parties that it will discharge those responsibilities.

A possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity.

Usually, an obligation of the acquirer to transfer additional assets or equity interests to the former owners of an acquiree as part of the exchange for control of the acquiree if specified future events occur or conditions are met. However, contingent consideration also may give the acquirer the right to the return of previously transferred consideration if specified conditions are met.

(a) A possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity; or

(b) a present obligation that arises from past events but is not recognised because:

• (i) it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or
• (ii) the amount of the obligation cannot be measured with sufficient reliability.

An agreement to issue shares that is dependent on the satisfaction of specified conditions.

Ordinary shares issuable for little or no cash or other consideration upon the satisfaction of specified conditions in a contingent share agreement.

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 at law. Contracts may take a variety of forms and need not be in writing.

The power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

Assets other than goodwill that contribute to the future cash flows of both the cash-generating unit under review and other cash-generating units.

A range around an entity’s best estimate of post-employment benefit obligations.

The amount of cash or cash equivalents paid or the fair value of the other consideration given to acquire an asset at the time of its acquisition or construction, or, when applicable, the amount attributed to that asset when initially recognised in accordance with the specific requirements of other IFRSs, eg IFRS 2.

A method of accounting for an investment whereby the investment is recognised at cost. The investor recognises income from the investment only to the extent that the investor receives distributions from retained earnings of the investee arising after the date of acquisition. Distributions received in excess of such profits are regarded as a recovery of investment and are recognised as a reduction of the cost of the investment.

All costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition.

All of the purchase price, import duties and other taxes (other than those subsequently recoverable by the entity from the taxing authorities), and transport, handling and other costs directly attributable to the acquisition of the item. Trade discounts, rebates and other similar items are deducted in determining the costs of purchase.

A construction contract in which the contractor is reimbursed for allowable or otherwise defined costs, plus a percentage of these costs or a fixed fee.

Costs directly related to the units of production, such as direct labour together with a systematic allocation of fixed and variable production overheads that are incurred in converting materials into finished goods.

Incremental costs directly attributable to the disposal of an asset, excluding finance costs and income tax expense.

The incremental costs directly attributable to the disposal of an asset (or disposal group), excluding finance costs and income tax expense.

The risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation.

The risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates.

An entity shall classify an asset as current when:

• (a) it expects to realise the asset or intends to sell or consume it in its normal operating cycle;
• (b) it holds the asset primarily for the purpose of trading;
• (c) it expects to realise the asset within twelve months after the reporting period
• (d) the asset is cash or a cash equivalent (as defined in IAS 7) unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. An entity shall classify all other assets as non-current.

The amount of cash or cash equivalents that would have to be paid if the same or an equivalent asset was acquired currently. The undiscounted amount of cash or cash equivalents that would be required to settle an obligation currently.

An entity shall classify a liability as current when:

• (a) it expects to settle the liability in its normal operating cycle;
• (b) it holds the liability primarily for the purpose of trading;
• (c) the liability is due to be settled within twelve months after the reporting period; or
• (d) the entity does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting period. An entity shall classify all other liabilities as non-current.

The increase in the present value of the defined benefit obligation resulting from employee service in the current period.

The amount of income taxes payable (recoverable) in respect of the taxable profit (tax loss) for a period.

A curtailment occurs when an entity either:

• (a) is demonstrably committed to make a material reduction in the number of employees covered by a plan; or
• (b) amends the terms of a defined benefit plan such that a material element of future service by current employees will no longer qualify for benefits, or will qualify only for reduced benefits.