Glossary of Defined Terms

accountability

The responsibility to provide information to enable users to make informed judgments about the performance, financial position, financing and investing, and compliance of the reporting entity.

SAC 2.5

accounting profit

The profit or loss for a period before deducting tax expense.

AASB 112.5

accrued benefits

Benefits the plan is presently obliged to transfer in the future to members and beneficiaries as a result of membership of the plan up to the reporting date and, in the case of defined contribution plans, encompasses benefits which have been allocated to individual members’ accounts and benefits not yet so allocated.

AAS 25.10

acquisition costs

The fixed and variable costs of acquiring new business, including commissions and similar distribution costs, and costs of accepting, issuing and initially recording policies.

(Acquisition costs relate to the costs incurred in acquiring specific life insurance contracts during the reporting period.  They do not include the general growth and development costs incurred by a life insurer.)

AASB 1038.20.1

active market

A market in which all the following conditions exist:

(a)    the items traded within the market are homogeneous;

(b)    willing buyers and sellers can normally be found at any time; and

(c)    prices are available to the public.

AASB 136.6, AASB 138.8, AASB 141.8

actuarial gains and losses

Actuarial gains and losses comprise:

(a)    experience adjustments (the effects of differences between the previous actuarial assumptions and what has actually occurred) ; and

(b)    the effects of changes in actuarial assumptions.

AASB 119.7

agricultural activity

The management by an entity of the biological transformation of biological assets for sale, into agricultural produce, or into additional biological assets.

AASB 141.5

amortisation (depreciation*)

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

* In the case of an intangible asset or goodwill, the term ‘amortisation’ is generally used instead of ‘depreciation’.  Both terms have the same meaning.

AASB 136.6, AASB 138.8

annual reporting period

The financial year or similar period to which an annual financial report relates.

AASB 101.Aus11.1

area of interest

An individual geological area which is considered to constitute a favourable environment for the presence of a mineral deposit or an oil or natural gas field, or has been proved to contain such a deposit or field.

AASB 6.A

assets held by a long-term employee benefit fund

Assets (other than non-transferable financial instruments issued by the reporting entity) that:

(a)    are held by an entity (a fund) that is legally separate from the reporting entity and exists solely to pay or fund employee benefits; and

(b)    are available to be used only to pay or fund employee benefits, are not available to the reporting entity’s own creditors (even in bankruptcy) , and cannot be returned to the reporting entity, unless either:

         (i)     the remaining assets of the fund          are sufficient to meet all the          related employee benefit          obligations of the plan or the          reporting entity; or

         (ii)    the assets are returned to the          reporting entity to reimburse it          for employee benefits already          paid.

AASB 119.7

attachment date

For a direct insurer, the date as from which the insurer accepts risk from the insured under an insurance contract or endorsement or, for a reinsurer, the date from which the reinsurer accepts risk from the direct insurer or another reinsurer under a reinsurance arrangement.

AASB 1023.19.1

available-for-sale financial assets

Those non-derivative financial assets that are designated as available for sale or are not classified as (a) loans and receivables, (b) held-to-maturity investments, or (c) financial assets at fair value through profit or loss. 

AASB 139.9

bank

A financial institution one of whose principal activities is to take deposits and borrow with the objective of lending and investing and which is within the scope of banking or similar legislation.

AASB 130.2

beneficiaries

Those persons who are currently receiving, or are currently entitled to receive, benefits from the superannuation plan.

AAS 25.10

biological transformation

The processes of growth, degeneration, production, and procreation that cause qualitative or quantitative changes in a biological asset.

AASB 141.5

business

An integrated set of activities and assets conducted and managed for the purpose of providing:
(a)    a return to investors; or
(b)    lower costs or other economic benefits directly and proportionately to policyholders or participants.
A business generally consists of inputs, processes applied to those inputs, and resulting outputs that are, or will be, used to generate revenues. If goodwill is present in a transferred set of activities and assets, the transferred set shall be presumed to be a business.

AASB 3.A

business segment

A distinguishable component of an entity that is engaged in providing an individual product or service or a group of related products or services and that is subject to risks and returns that are different from those of other business segments.

AASB 114.9

capacity

Ability or power, whether direct or indirect, and includes ability or power that is presently exercisable as a result of, by means of, in breach of, or by revocation of, any of or any combination of the following:
(a) trusts;
(b) relevant agreements; and
(c) practices;
whether or not enforceable.

AAS 22.13,   AAS 31.22.1

capitalisation

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

AASB 123.11

The amount at which an asset is recognised in the balance sheet.

AASB 140.5, AASB 141.8

cash equivalents

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.

AASB 107.6

cash flows

Inflows and outflows of cash and cash equivalents.

AASB 107.6

cash-settled share-based payment transaction

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.

AASB 2.A

change in accounting estimate

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.

AASB 108.5

claim

A demand by any party external to the entity for payment by the insurer on account of an alleged loss resulting from an insured event or events, that have occurred, alleged to be covered by an insurance contract.

AASB 1023.19.1

claims incurred

Claims that have occurred prior to the reporting date, the claims could be reported or unreported at the reporting date. 

AASB 1023.19.1

class of non-current assets

A category of non-current assets having a similar nature or function in the operations of the entity, which category, for the purpose of disclosure in the financial report, is shown as a single item without supplementary dissection.

AAS 31.22.1

closing rate

The spot exchange rate at the reporting date.

AASB 121.8

comparability

Means that quality of financial information which exists when users of that information are able to discern and evaluate similarities in, and differences between, the nature and effects of transactions and events, at one time and over time, either when assessing aspects of a single reporting entity or of a number of reporting entities.

AAS 31.22.1

compliance

Adherence to those statutory requirements, regulations, rules, ordinances, directives or other externally-imposed requirements in respect of which non-compliance may have, or may have had, a financial effect on the reporting entity.

SAC 2.5

compound instrument

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

AASB 132.28

construction contract

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.

AASB 111.3

contingent asset

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.

AASB 137.10

contingent rent

That 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 (e.g. percentage of future sales, amount of future use, future price indices, future market rates of interest) .

AASB 117.4

contingently issuable ordinary shares

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

AASB 133.5

contributions

Non-reciprocal transfers to the entity.

AASB 1004.A, AAS 27.12,  AAS 29.17.1, AAS 31.22.1

control

The capacity of an entity to dominate decision making, directly or indirectly, in relation to the financial and operating policies of another entity so as to enable that other entity to operate with it in achieving the objectives of the controlling entity.

AAS 22.13,   AAS 31.22.1, AAS 29.17.1, SAC 1.6

control of an asset

The capacity of the entity to benefit from the asset in the pursuit of the entity’s objectives and to deny or regulate the access of others to that benefit.

AAS 29.17.1, AAS 31.22.1

corridor

A range around an entity’s best estimate of post-employment benefit obligations.  Outside that range, it is not reasonable to assume that actuarial gains or losses will be offset in future years.

AASB 119.95

cost method

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 earnings are regarded as a recovery of investment and are recognised as a reduction of the cost of the investment.

AASB 127.4

cost of conversion

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.

AASB 102.12

cost of purchase

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.

AASB 102.11

costs of disposal

Incremental costs directly attributable to the disposal of an asset or cash-generating unit, excluding finance costs and income tax expense.

AASB 136.6

credit risk

The risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss.

AASB 132.52(b)

current asset

An asset that satisfies any of the following criteria:
(a)    it is expected to be realised in, or is intended for sale or consumption in, the entity’s normal operating cycle;
(b)    it is held primarily for the purpose of being traded;
(c)    it is expected to be realised within twelve months after the reporting date; or
(d)    it is cash or a cash equivalent (as defined in AASB 107 Cash Flow Statements) unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date.

AASB 101.57, AASB 5.A

current liabilities

A liability shall be classified as current when it satisfies any of the following criteria:
(a)    it is expected to be settled in the entity’s normal operating cycle;
(b)    it is held primarily for the purpose of being traded;
(c)    it is due to be settled within twelve months after the reporting date; or
(d)    the entity does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
All other liabilities shall be classified as non-current.

AASB 101.60

current service cost

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

AASB 119.7

curtailment

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.

AASB 119.111

date of exchange

When a business combination is achieved in a single exchange transaction, the date of exchange is the acquisition date. When a business combination involves more than one exchange transaction, for example when it is achieved in stages by successive share purchases, the date of exchange is the date that each individual investment is recognised in the financial report of the acquirer.

AASB 3.A

deductible temporary difference

A temporary difference that will result in amounts that are deductible in determining taxable profit (tax loss)of future periods when the carrying amount of the asset or liability is recovered or settled.

AASB 112.5

deferred tax assets

The amounts of income taxes recoverable in future periods in respect of:
(b)    the carryforward of unused tax losses; and
(c)    the carryforward of unused tax credits.

AASB 112.5

defined benefit liability

The net total of the following amounts:
(a)    the present value of the defined benefit obligation at the reporting date;
(b)    plus any actuarial gains (less any actuarial losses)not recognised;
(c)    minus any past service cost not yet recognised;
(d)    minus the fair value at the reporting date of plan assets (if any)out of which the obligations are to be settled directly.

AASB 119.54

defined benefit plans

Post-employment benefit plans other than defined contribution plans.

AASB 119.7

defined contribution plans

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.

AASB 119.7

demonstrably committed

An entity is demonstrably committed to pay termination benefits when, and only when, an entity has a detailed formal plan for the termination and is without realistic possibility of withdrawal.  The detailed plan shall include, as a minimum:
(a)    the location, function, and approximate number of employees whose services are to be terminated;
(b)    the termination benefits for each job classification or function; and
(c)    the time at which the plan will be implemented.  Implementation shall begin as soon as possible and the period of time to complete implementation shall be such that material changes to the plan are not likely.

AASB 119.134

deposit premium

The premium charged by the insurer at the inception of a contract under which the final premium depends on conditions prevailing over the contract period and so is not determined until the expiry of that period.

AASB 1023.19.1

depreciable asset

A non-current asset having a limited useful life.

AAS 27.12,  AAS 29.17.1, AAS 31.22.1

depreciation (amortisation)*

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

* In the case of an intangible asset, the term ‘amortisation’ is generally used instead of ‘depreciation’.  The two terms have the same meaning.

AASB 116.6, AASB 136.6

derivative

A financial instrument or other contract within the scope of this Standard (see paragraphs 2-7)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.

AASB 139.9

development

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

AASB 138.8

dilution

A reduction in earnings per share or an increase in loss per share resulting from the assumption that convertible instruments are converted, that options or warrants are exercised, or that ordinary shares are issued upon the satisfaction of specified conditions.

AASB 133.5

director

(a)    Any person that directs an entity in its financial and operating activities independently or in concert with others (regardless of whether known by that title);
(b)    any person occupying or acting in the position of director of an entity, by whatever name called and whether or not validly appointed to occupy or duly authorised to act in the position; or
(c)    any person in accordance with whose directions or instructions the directors of an entity are accustomed to act.

AAS 22.13

director-related entities

In relation to particular directors, the spouses of such directors, relatives of such directors or spouses, and any other entity under the joint or several control or significant influence of such directors, spouses or relatives.

AAS 22.13

direct method of reporting cash flows from operating activities

A method which discloses major classes of gross cash receipts and gross cash payments.

AASB 107.18(a)

discontinued operation

A component of an entity that either has been disposed of or is classified as held for sale and
(a)    represents a separate major line of business or geographical area of operations;
(b)    is part of a single co-ordinated plan to dispose of a separate major line of business or geographical area of operations; or
(c)    is a subsidiary acquired exclusively with a view to resale.

AASB 5.A

disposal group

A group of assets to be disposed of, by sale or otherwise, together as a group in a single transaction, and liabilities directly associated with those assets that will be transferred in the transaction. The group includes goodwill acquired in a business combination if the group is a cash-generating unit to which goodwill has been allocated in accordance with the requirements of paragraphs 80-87 of AASB 136 Impairment of Assets (as revised in 2004)or if it is an operation within such a cash-generating unit.

AASB 5.A

dividends

Distributions of profits to holders of equity investments in proportion to their holdings of a particular class of capital.

AASB 118.5

economic entity

A group of entities comprising the parent entity and each of the entities that it controls.

AAS 22.13,  AAS 29.17.1, (AASB 1046.12.1)

economic life

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.

AASB 117.4

effectiveness

The extent to which the entity achieved the objectives established for its operations or activities, whether those objectives were expressed in terms of outputs or outcomes.

AAS 29.17.1

effective interest method

The effective interest method is 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. The effective interest rate is 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 AASB 118) , 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) .

AASB 139.9

embedded derivative

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. 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.

AASB 139.10

employee benefits

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

AASB 119.7

entity

Any legal, administrative, or fiduciary arrangement, organisational structure or other party (including a person) having the capacity to deploy scarce resources in order to achieve objectives.

AASB 101.Aus11.1 AAS 22.13,  AAS 25.10,  AAS 27.12,  AAS 29.17.1, AAS 31.22.1, SAC 1.6

equity

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

F.49(c)          AAS 27.12,  AAS 29.17.1, AAS 31.22.1

equity instrument

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

AASB 132.11, AASB 2.A, AASB 1046.12.1

equity method

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.

AASB 128.2, (AASB 131.3)

events after the reporting date

Events after the reporting date are those events, favourable and unfavourable, that occur between the reporting date and the date when the financial report is authorised for issue.  Two types of events can be identified:
(a)    those that provide evidence of conditions that existed at the reporting date (adjusting events after the reporting date) ; and
(b)    those that are indicative of conditions that arose after the reporting date (non-adjusting events after the reporting date) .

AASB 110.3

exchange rate

The ratio of exchange for two currencies.

AASB 121.8

expenses

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.

F.70(b)

experience adjustments

The effect of differences between previous actuarial assumptions and what has actually occurred.

AASB 119.7

exploration and evaluation expenditures

Expenditures incurred by an entity in connection with the exploration for and evaluation of mineral resources before the technical feasibility and commercial viability of extracting a mineral resource are demonstrable.

AASB 6.A

fair value

The amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction.

AASB 102.6, (AASB 116.6) , AASB 117.4, AASB 118.7, (AASB 119.7) ,  AASB 121.8, AASB 132.11, (AASB 138.8) , AASB 139.9, AASB 140.5, AASB 1.A, (AASB 2.A) , AASB 3.A, AASB 4.A, AASB 5.A, AASB 1023.19.1, AASB 1038.20.1,  AAS 29.17.1,     AAS 31.22.1, AASB 120.3, AAS 22.13,  AAS 27.12

fair value less costs to sell

The amount obtainable from the sale of an asset or cash-generating unit in an arm’s length transaction between knowledgeable, willing parties, less the costs of disposal.

AASB 136.6

finance lease

A lease that transfers substantially all the risks and rewards incident to ownership of an asset.  Title may or may not eventually be transferred.

AASB 117.4

financial asset or financial liability at fair value through profit or loss

A financial asset or financial liability that meets either of the following conditions:
(a)    it is classified as held for trading. A financial asset or financial liability is classified as held for trading if it is:
         (i)     acquired or incurred principally          for the purpose of selling or          repurchasing it in the near term;
         (ii)    part of a portfolio of identified          financial instruments that are          managed together and for which          there is evidence of a recent          actual pattern of short-term          profit-taking; or
         (iii)   a derivative (except for a          derivative that is a designated          and effective hedging          instrument) ; or
(b)    upon initial recognition it is designated by the entity as at fair value through profit or loss. Any financial asset or financial liability within the scope of this Standard may be designated when initially recognised as a financial asset or financial liability at fair value through profit or loss except for investments in equity instruments that do not have a quoted market price in an active market, and whose fair value cannot be reliably measured (see paragraph 46(c) and Appendix A paragraphs AG80 and AG81) .

AASB 139.9

financial instrument

Any contract that gives rise to both a financial asset of one entity and a financial liability or equity instrument of another entity.

AASB 132.11, AASB 1023.19.1, AASB 1038.20.1

financial position

The relationship of the assets, liabilities, and equities of an entity, as reported in the balance sheet.

The economic condition of a reporting entity, having regard to its control over resources, financial structure, capacity for adaptation and solvency.

F.47

SAC 2.5

financial statements

A complete set of financial statements comprises:
(a)    balance sheet;
(b)    income statement;
(c)    a statement showing either:
         (i)     all changes in equity; or
         (ii)    changes in equity other than          those arising from transactions          with equity holders acting in          their capacity as equity holders;
(d)    a cash flow statement; and
(e)    notes, comprising a summary of significant accounting policies and other explanatory notes.

AASB 101.8, (F.7)

financing and investing

Those activities of a reporting entity that relate to the financing of its operations and the investment of its resources.

SAC 2.5

firm purchase commitment

An agreement with an unrelated party, binding on both parties and usually legally enforceable, that (a) specifies all significant terms, including the price and timing of the transactions, and (b) includes a disincentive for non-performance that is sufficiently large to make performance highly probable.

AASB 5.A

first Australian-equivalents-to-IFRSs reporting period

The reporting period ending on the reporting date of an entity’s first Australian-equivalents-to-IFRSs financial report.

AASB 1.A

fixed price contract

A construction contract in which the contractor agrees to a fixed contract price, or a fixed rate per unit of output, which in some cases is subject to cost escalation clauses.

AASB 111.3

forecast transaction

An uncommitted but anticipated future transaction.

AASB 139.9

foreign currency transaction

A transaction that is denominated in or requires settlement in a foreign currency.

AASB 121.20

forgivable loans

Loans which the lender undertakes to waive repayment of under certain prescribed conditions.

AASB 120.3

functional currency

The currency of the primary economic environment in which the entity operates.

AASB 121.8

future claims

Claims in respect of insured events that are expected to occur in future reporting periods under policies where the attachment date is prior to the reporting date.

AASB 1023.19.1

gains

Increases in economic benefits and as such are no different in nature from revenue.

F.75

general insurer

An insurer that writes general insurance contracts. 

AASB 1023.19.1

general reinsurance contract

A reinsurance contract that is not a life reinsurance contract.

AASB 1023.19.1

going concern

The entity is normally viewed as a going concern, that is, as continuing in operation for the foreseeable future.  It is assumed that the entity has neither the intention nor the necessity of liquidation or of curtailing materially the scale of its operations.

AASB      101.23-24,      F.23

government

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

AASB 120.3

government assistance

Action by government designed to provide an economic benefit specific to an entity or range of entities qualifying under certain criteria.  Government assistance for the purpose of this Standard does not include benefits provided only indirectly through action affecting general trading conditions, such as the provision of infrastructure in development areas or the imposition of trading constraints on competitors. 

AASB 120.3

government grants

Assistance by government in the form of transfers of resources to an entity in return for past or future compliance with certain conditions relating to the operating activities of the entity.  They exclude those forms of government assistance which cannot reasonably have a value placed upon them and transactions with government which cannot be distinguished from the normal trading transactions of the entity.

AASB 120.3, AASB 141.8

grants related to assets

Government grants whose primary condition is that an entity qualifying for them shall purchase, construct or otherwise acquire long-term assets.  Subsidiary conditions may also be attached restricting the type or location of the assets or the periods during which they are to be acquired or held.

AASB 120.3

gross investment in the lease

The aggregate of:
(a)    the minimum lease payments receivable by the lessor under a finance lease; and
(b)    any unguaranteed residual value accruing to the lessor.

AASB 117.4

group administration (employee benefit) plans

An aggregation of single employer plans combined to allow participating employers to pool their assets for investment purposes and reduce investment management and administration costs, but the claims of different employers are segregated for the sole benefit of their own employees. 

AASB 119.33

guaranteed benefits

Payments or other benefits to which a particular policyholder or investor has an unconditional right that is not subject to the contractual discretion of the issuer.

AASB 4.A, AASB 1038.20.1

guaranteed residual value

(a)    for a lessee, that part of the residual value that is guaranteed by the lessee or by a party related to the lessee (the amount of the guarantee being the maximum amount that could, in any event, become payable) ; and
(b)    for a lessor, that part of the residual value that is guaranteed by the lessee or by a third party unrelated to the lessor that is financially capable of discharging the obligations under the guarantee.

AASB 117.4

harvest

The detachment of produce from a biological asset or the cessation of a biological asset’s life processes.

AASB 141.5

hedged item

A hedged item is an asset, liability, firm commitment, highly probable forecast transaction or net investment in a foreign operation that (a) exposes the entity to risk of changes in fair value or future cash flows and (b) is designated as being hedged (AASB 139 paragraphs 78-84 and Appendix A paragraphs AG98-AG101 elaborate on the definition of hedged items) .

AASB 139.9

held-to-maturity investment

Non-derivative financial assets with fixed or determinable payments and fixed maturity that an entity has the positive intention and ability to hold to maturity (see Appendix A paragraphs AG16-AG25) other than:
(a)    those that the entity upon initial recognition designates as at fair value through profit or loss;
(b)    those that the entity designates as available for sale; and
(c)    those that meet the definition of loans and receivables.

An entity shall not classify any financial assets as held to maturity if the entity has, during the current annual reporting period or during the two preceding annual reporting periods, sold or reclassified more than an insignificant amount of held-to-maturity investments before maturity (more than insignificant in relation to the total amount of held-to-maturity investments) other than sales or reclassifications that:
(i)     are so close to maturity or the financial asset’s call date (for example, less than three months before maturity) that changes in the market rate of interest would not have a significant effect on the financial asset’s fair value;
(ii)    occur after the entity has collected substantially all of the financial asset’s original principal through scheduled payments or prepayments; or
(iii)   are attributable to an isolated event that is beyond the entity’s control, is non-recurring and could not have been reasonably anticipated by the entity.

AASB 139.9

hire-purchase contract

The definition of a lease includes contracts for the hire of an asset which contain a provision giving the hirer an option to acquire title to the asset upon the fulfilment of agreed conditions.  These contracts are sometimes known as hire purchase contracts.

AASB 117.6

hyperinflation

Loss of purchasing power of money at such a rate that comparison of amounts from transactions and other events that have occurred at different times, even within the same reporting period, is misleading. 

Hyperinflation is indicated by characteristics of the economic environment of a country which include, but are not limited to, the following:
(a)    the general population prefers to keep its wealth in non-monetary assets or in a relatively stable foreign currency.  Amounts of local currency held are immediately invested to maintain purchasing power;
(b)    the general population regards monetary amounts not in terms of the local currency but in terms of a relatively stable foreign currency.  Prices may be quoted in that currency;
(c)    sales and purchases on credit take place at prices that compensate for the expected loss of purchasing power during the credit period, even if the period is short;
(d)    interest rates, wages and prices are linked to a price index; and
(e)    the cumulative inflation rate over three years is approaching, or exceeds, 100%.

AASB 129.2-3

impairment loss

The amount by which the carrying amount of an asset exceeds its recoverable amount.

AASB 116.6, AASB 136.6, AASB 138.8

Applying a requirement is impracticable when the entity cannot apply it after making every reasonable effort to do so.  For a particular prior period, it is impracticable to apply a change in an accounting policy retrospectively or to make a retrospective restatement to correct an error if:
(a)    the effects of the retrospective application or retrospective restatement are not determinable;
(b)    the retrospective application or retrospective restatement requires assumptions about what management’s intent would have been in that period; or
(c)    the retrospective application or retrospective restatement requires significant estimates of amounts and it is impossible to distinguish objectively information about those estimates that:
         (i)     provides evidence of          circumstances that existed on          the date(s) as at which those          amounts are to be recognised,          measured or disclosed; and
         (ii)    would have been available          when the financial report for          that prior period were          authorised for issue;

         from other information.

AASB 108.5

inception of a lease

The earlier of the date of the lease agreement and the date of commitment by the parties to the principal provisions of the lease.

AASB 117.4

incremental borrowing rate of interest (lessee’s)

The rate of interest the lessee would have to pay on a similar lease or, if that is not determinable, the rate that, at the inception of the lease, the lessee would incur to borrow over a similar term, and with a similar security, the funds necessary to purchase the asset.

AASB 117.4

initial direct costs

Incremental costs that are directly attributable to negotiating and arranging a lease, except for such costs incurred by manufacturer or dealer lessors.

AASB 117.4

insurance contract

A contract under which one party (the insurer) accepts significant insurance risk from another party (the policyholder) by agreeing to compensate the policyholder if a specified uncertain future event (the insured event) adversely affects the policyholder.

AASB 4.A, AASB 1023.19.1, AASB 1038.20.1

insurance risk

Risk, other than financial risk, transferred from the holder of a contract to the issuer.

AASB 4.A, AASB 1023.19.1, AASB 1038.20.1

insurer

The party that has an obligation under an insurance contract to compensate a policyholder if an insured event occurs.

AASB 4.A, AASB 1023.19.1, AASB 1038.20.1

intangible asset

An identifiable non-monetary asset without physical substance.

AASB 138.8, AASB 3.A

interest rate implicit in the lease

The discount rate that, at the inception of the lease, causes the aggregate present value of (a) the minimum lease payments and (b) the unguaranteed residual value to be equal to the sum of (i) the fair value of the leased asset and (ii) any initial direct costs of the lessor.

AASB 117.4

interim period

A reporting period shorter than a full annual reporting period.

AASB 134.4

intrinsic value

The difference between the fair value of the shares to which the counterparty has the (conditional or unconditional) right to subscribe or which it has the right to receive, and the price (if any) the counterparty is (or will be) required to pay for those shares. For example, a share option with an exercise price of CU15, * on a share with a fair value of CU20, has an intrinsic value of CU5.

* Monetary items are denominated in ‘currency units’ (CU)

AASB 2.A

Inventories encompass goods purchased and held for resale including, for example, merchandise purchased by a retailer and held for resale, or land and other property held for resale. Inventories also encompass finished goods produced, or work in progress being produced, by the entity and include materials and supplies awaiting use in the production process. In the case of a service provider, inventories include the costs of the service, as described in paragraph 19, for which the entity has not yet recognised the related revenue (see AASB 118 Revenue) .

AASB 102.8

investing activities

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

AASB 107.6

investment property

Property (land or a building – or part of a building – or both) held (by the owner or by the lessee under a finance lease) to earn rentals or for capital appreciation or both, rather than for:
(a)    use in the production or supply of goods or services or for administrative purposes; or
(b)    sale in the ordinary course of business.

AASB 140.5

Joint control

The contractually agreed sharing of control over an economic activity.

AASB 124.9

joint venture

A contractual arrangement whereby two or more parties undertake an economic activity which is subject to joint control.

AASB 131.3 AASB 3.A

key management personnel

Those 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.

AASB 124.9

land under roads

Land under roadways, and road reserves (including land under footpaths, nature strips and median strips) .

AAS 27.12   AAS 29.17.1

lease term

The non-cancellable period for which the lessee has contracted to lease the asset together with any further terms for which the lessee has the option to continue to lease the asset, with or without further payment, when at the inception of the lease it is reasonably certain that the lessee will exercise.

AASB 117.4

lessee’s incremental borrowing rate of interest

The rate of interest the lessee would have to pay on a similar lease or, if that is not determinable, the rate that, at the inception of the lease, the lessee would incur to borrow over a similar term, and with a similar security, the funds necessary to purchase the asset.

AASB 117.4

The future sacrifice of economic benefits that the entity is presently obliged to make to other entities as a result of past transactions or other past events.

AAS 27.12,  AAS 29.17.1, AAS 31.22.1

life insurance business

All life insurance contract and life investment contract business conducted by a life insurer.

AASB 1038.20.1

life insurance liability

A life insurer’s net contractual obligations under a life insurance contract.

AASB 1038.20.1

life investment contract

A contract which is regulated under the Life Insurance Act 1995 but which does not meet the definition of a life insurance contract in this Standard, and similar contracts issued by entities operating outside Australia.

AASB 1038.20.1

life reinsurance contract

A life insurance contract issued by one insurer (the reinsurer) to compensate another insurer (the cedant) for losses on one or more contracts issued by the cedant.

AASB 1023.19.1, AASB 1038.20.1

liquidity risk

The risk that an entity will encounter difficulty in raising funds to meet commitments associated with financial instruments.  Liquidity risk may result from an inability to sell a financial asset quickly at close to its fair value. 

AASB 132.52(c)

local government

An entity comprising all entities controlled by a governing body elected or appointed pursuant to a Local Government Act or similar legislation.

AAS 27.12

losses

Decreases in economic benefits and as such they are no different in nature from other expenses.

F.79

market condition

A condition upon which the exercise price, vesting or exercisability of an equity instrument depends that is related to the market price of the entity’s equity instruments, such as attaining a specified share price or a specified amount of intrinsic value of a share option, or achieving a specified target that is based on the market price of the entity’s equity instruments relative to an index of market prices of equity instruments of other entities.

AASB 2.A, AASB 1046.12.1, AASB 1046A.3.1

master netting arrangement

An arrangement providing for an entity that undertakes a number of financial instrument transactions with a single counterparty to make a single net settlement of all financial instruments covered by the agreement in the event of default on, or termination of, any one contract.

AASB 132.50

material

Omissions or misstatements of items are material if they could, individually or collectively, influence the economic decisions of users taken on the basis of the financial report. Materiality depends on the size and nature of the omission or misstatement judged in the surrounding circumstances. The size or nature of the item, or a combination of both, could be the determining factor.

AASB 101.11, AASB 108.5 AASB 1031.A

measurement

The process of determining the monetary amounts at which the elements of the financial statements are to be recognised and carried in the balance sheet and income statement.

F.99

members

Those persons in respect of whom contributions are made, or have been made, under the terms of a superannuation plan, and who, as a consequence, expect to receive benefits from the plan.

AAS 25.10

minority interest

That portion of the profit or loss and net assets of a subsidiary attributable to equity interests that are not owned, directly or indirectly through subsidiaries, by the parent.

AASB 127.4, AASB 3.A

multi-employer (benefit) plans

Defined contribution plans (other than state plans) or defined benefit plans (other than state plans) that:
(a)    pool the assets contributed by various entities that are not under common control; and
(b)    use those assets to provide benefits to employees of more than one entity, on the basis that contribution and benefit levels are determined without regard to the identity of the entity that employs the employees concerned. 

AASB 119.7

net claims incurred

Direct claims costs net of reinsurance and other recoveries, and indirect claims handling costs, determined on a discounted basis.

AASB 1023.19.1

net investment in the lease

The gross investment in the lease discounted at the interest rate implicit in the lease.

AASB 117.4

net realisable value

The estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.

AASB 102.6

neutrality

Freedom from bias of the information contained in financial reports.

F.36

non-current asset

An asset that does not meet the definition of a current asset.

AASB 5.A

non-investment-linked business

Life insurance business other than investment-linked business.

AASB 1038.20.1

normal capacity of production facilities

The production expected to be achieved on average over a number of periods or seasons under normal circumstances, taking into account the loss of capacity resulting from planned maintenance.

AASB 102.13

not-for-profit entity

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 and each of the entities that it controls.

AASB 102.Aus6.1, AASB 114.Aus8.1, AASB 116.Aus6.1, AASB 136.Aus6.2

obligating event

An event that creates a legal or constructive obligation that results in an entity having no realistic alternative to settling that obligation.

AASB 137.10

onerous contract

A contract in which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it.

AASB 137.10

operating activities

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

AASB 107.6, AASB 114.8

operating lease

A lease other than a finance lease.

AASB 117.4

ordinary share

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

AASB 133.5

outside equity interest

The equity in the economic entity other than that which can be attributed to the ownership group of the parent entity.

AAS 31.22.1

owner-occupied property

Property held (by the owner or by the lessee under a finance lease) for use in the production or supply of goods or services or for administrative purposes.

AASB 140.5

ownership interest

The percentage of capital of an entity held, whether such capital is held directly or indirectly.

AAS 22.13

parent

An entity that has one or more subsidiaries.

AASB 127.4, AASB 3.A

past service cost

The increase in the present value of the defined benefit obligation for employee service in prior periods, resulting in the current period from the introduction of, or changes to, post-employment benefits or other long-term employee benefits.   Past service cost may be either positive (where benefits are introduced or improved) or negative (where existing benefits are reduced) .

AASB 119.7

performance

The relationship of the income and expenses of an entity, as reported in the income statement.

F.47

personally-related entities

In relation to a particular individual, the relatives of the individual, the spouses of the relatives and any other entity under the joint or several control or significant influence of the individual, relatives of the individual or spouses of relatives.

AASB 1046.12.1

policyholder

A party that has a right to compensation under an insurance contract if an insured event occurs.

AASB 4.A, AASB 1023.19.1, AASB 1038.20.1

post-employment benefits

Employee benefits (other than termination benefits) which are payable after the completion of employment.

AASB 119.7

post-employment benefit plans

Formal or informal arrangements under which an entity provides post-employment benefits for one or more employees.

AASB 119.7

premium

The amount charged in relation to accepting risk from the insured, but does not include amounts collected on behalf of third parties.

AASB 1023.19.1

presentation currency

The currency in which the financial report is presented.  

AASB 121.8

previous GAAP

The basis of accounting that a first-time adopter used immediately before adopting Australian equivalents to IFRSs.

AASB 1.A

primary financial instruments

Financial instruments such as receivables, payables and equity securities, that are not derivative financial instruments.

AASB 132.AG15

probable

More likely than not.

AASB 3.A, AASB 5.A

projected unit credit method

An actuarial valuation method that sees each period of service as giving rise to an additional unit of benefit entitlement and measures each unit separately to build up the final obligation (sometimes known as the accrued benefit method pro-rated on service or as the benefit/years of service method) .

AASB 119.64-66

prospective application

Prospective application of a change in accounting policy and of recognising the effect of a change in an accounting estimate, respectively, are:
(a)    applying the new accounting policy to transactions, other events and conditions occurring after the date as at which the policy is changed; and
(b)    recognising the effect of the change in the accounting estimate in the current and future periods affected by the change.

AASB 108.5

prudence

The inclusion of a degree of caution in the exercise of the judgements needed in making the estimates required under conditions of uncertainty, such that assets or income are not overstated and liabilities or expenses are not understated.

F.37

put options (on ordinary shares)

Contracts that give the holder the right to sell ordinary shares at a specified price for a given period.

AASB 133.5

qualifying assets

An asset that necessarily takes a substantial period of time to get ready for its intended use or sale.

AASB 123.4

realisable value

The amount of cash or cash equivalents that could currently be obtained by selling an asset in an orderly disposal. 

F .100(c)

recognised

Reported on, or incorporated in amounts reported on, the face of the profit and loss or other operating statement or of the statement of financial position (whether or not further disclosure of the item is made in notes thereto) .

AAS 22.13,  (AAS 27.12) ,  (AAS 29.17.1) , (AAS 31.22.1)

reconstruction within a reporting entity

A business combination in which:
(a)        control of a group of assets comprising a business is transferred from one entity in a reporting entity (the vendor entity) to another entity in the same reporting entity (the acquirer) ; or
(b)        the direct ownership interests in the ultimate parent entity of a reporting entity held by each of the owners of that parent entity are transferred to a newly-formed entity (the acquirer) ;

and in which the acquirer only issues its own equity instruments as purchase consideration, and the ultimate owners and the relative ownership interests of the ultimate owners of the transferred business remain unchanged as a result of the business combination.

AASB 3.A

regular way purchase or sale

A purchase or sale of a financial asset under a contract whose terms require delivery of the asset within the time frame established generally by regulation or convention in the marketplace concerned.

AASB 139.9

reinsurance assets

A cedant’s net contractual rights under a reinsurance contract.

AASB 4.A, AASB 1023.19.1, AASB 1038.20.1

reinsurer

The party that has an obligation under a reinsurance contract to compensate a cedant if an insured event occurs.

AASB 4.A, AASB 1023.19.1, AASB 1038.20.1

related party transaction

A transfer of resources, services or obligations between related parties, regardless of whether a price is charged.

AASB 124.9

relative

In relation to a person, the spouse, parent or remoter lineal ancestor, son, daughter or remoter issue, or brother or sister of the person.

AAS 22.13, AASB 1046.12.1

reliability

Information has the quality of reliability when it is free from material error and bias and can be depended upon by users to represent faithfully that which it either purports to represent or could reasonably be expected to represent.

Means that quality of financial information which exists when that information can be depended upon to represent faithfully, and without bias or undue error, the transactions or events that either it purports to represent or could reasonably be expected to represent.

F.31

AAS 31.22.1

reload option

A new share option granted when a share is used to satisfy the exercise price of a previous share option.

AASB 2.A

reporting date

The end of the latest period covered by a financial report or by an interim financial report.

AASB 1.A

reporting entity

An entity in respect of which it is reasonable to expect the existence of users who rely on the entity’s general purpose financial report for information that will be useful to them for making and evaluating decisions about the allocation of resources. A reporting entity can be a single entity or a group comprising a parent and all of its subsidiaries.

AASB 3.A   

repricing

In relation to options or rights means any change to the terms or conditions of an option or right over shares or units that benefits the holder.

AASB 1046.12.1

residual value

The net amount which an entity expects to obtain for an asset at the end of its useful life after deducting the expected costs of disposal.

AASB 116.6

restructuring

A programme that is planned and controlled by management, and materially changes either:
(a)    the scope of a business undertaken by an entity; or
(b)    the manner in which that business is conducted.

AASB 137.10

retirement benefits

Post-employment benefits other than pension, superannuation and termination benefits and includes prescribed benefits as well as benefits which, if earned progressively over the period of employment, are recognised on an accrual basis.

AASB 1046.12.1

retrospective restatement

Correcting the recognition, measurement and disclosure of amounts of elements of financial statements as if a prior period error had never occurred.

AASB 108.5

revaluation

Restatement of assets and liabilities.

F.81

revenue

The gross inflow of economic benefits during the period arising in the course of the ordinary activities of an entity when those inflows result in increases in equity, other than increases relating to contributions from equity participants.

AASB 118.7, AASB 114.8

reverse acquisition

An acquisition where the acquirer is the entity whose equity interests have been acquired and the issuing entity is the acquiree. This might be the case when, for example, a private entity arranges to have itself ‘acquired’ by a smaller public entity as a means of obtaining a stock exchange listing.

AASB 3.21

risks associated with a leased asset

Risks include possibilities of losses from idle capacity or technological obsolescence and of variations in return due to changing economic conditions.

AASB 117.7

sale and leaseback transaction

The sale of an asset and the leasing back of the same asset. The lease payment and the sale price are usually interdependent because they are negotiated as a package.

AASB 117.58

segment assets

Those operating assets that are employed by a segment in its operating activities and that either are directly attributable to the segment or can be allocated to the segment on a reasonable basis.  

AASB 114.16

segment liabilities

Those operating liabilities that result from the operating activities of a segment and that either are directly attributable to the segment or can be allocated to the segment on a reasonable basis. 

If a segment’s segment result includes interest expense, its segment liabilities include the related interest-bearing liabilities.

AASB 114.16

segment revenue

Revenue reported in the entity’s income statement that is directly attributable to a segment and the relevant portion of entity revenue that can be allocated on a reasonable basis to a segment, whether from sales to external customers or from transactions with other segments of the same entity.

AASB 114.16

set-off, legal right of

A debtor’s legal right, by contract or otherwise, to settle or otherwise eliminate all or a portion of an amount due to a creditor by applying against that amount an amount due from the creditor.

AASB 132.40

settlement date

The date that a financial asset is delivered to the entity that purchased it.

AASB 139.AG56

share-based payment arrangement

An agreement between the entity and another party (including an employee) to enter into a share-based payment transaction, which thereby entitles the other party to receive cash or other assets of the entity for amounts that are based on the price of the entity’s shares or other equity instruments of the entity, or to receive equity instruments of the entity, provided the specified vesting conditions, if any, are met.

AASB 2.A

share-based payment transaction

A transaction in which the entity receives goods or services as consideration for equity instruments of the entity (including shares or share options) , or acquires goods or services by incurring liabilities to the supplier of those goods or services for amounts that are based on the price of the entity’s shares or other equity instruments of the entity.

AASB 2.A

short seller

An entity that sells securities that it has borrowed and does not yet own.

AASB 139.AG15

significant influence

Significant influence is the power to participate in the financial and operating policy decisions of an entity, but is not control over those policies. (Significant influence may be gained by share ownership, statute or agreement.)

AASB 128.2, AASB 131.3, (AASB 124.9) , (AAS 22.13)

special purpose financial report

A financial report other than a general purpose financial report.

AASB 101.Aus11.1

specified executive

Means one of the five or more executives who:
(a)    have the greatest authority for managing the consolidated group or, where there are no subsidiaries, the entity required to prepare the financial report;
(b)    are employed at any time during the reporting period by the entity or any of its subsidiaries; and
(c)    are not specified directors.

AASB 1046.12.1, AASB 124.Aus9.1

state (employee benefit) plan

Employee benefit plans established by legislation to cover all entities (or all entities in a particular category, for example a specific industry) and operated by national or local government or by another body (for example an autonomous agency created specifically for this purpose) which is not subject to control or influence by the reporting entity.

AASB 119.37

subsidiary

An entity, including an unincorporated entity such as a partnership, that is controlled by another entity (known as the parent) .

AASB 3.A, AASB 127.4, AASB 128.2 (AASB 1046.12.1) ,  (AAS 29.17.1)

superannuation plan

An arrangement whereby it is agreed, between trustees and employers, employees or self employed persons, that benefits be provided upon the retirement of plan members or upon their resignation, death, disablement or other specified event(s) .

AAS 25.10

tax base of an asset or liability

The amount attributed to that asset or liability for tax purposes.

AASB 112.5

taxable profit (tax loss)

The profit (loss) for a period, determined in accordance with the rules established by the taxation authorities, upon which income taxes are payable (recoverable) .

AASB 112.5

temporary difference

A difference between the carrying amount of an asset or liability in the balance sheet and its tax base.  A temporary difference may be either:
(a)    a taxable temporary difference;  or
(b)    a deductible temporary difference.

AASB 112.5

trade date

The date that an entity commits itself to purchase or sell an asset.

AASB 139.AG55

transitional liability (defined benefit plans)

The following total:
(a)    the present value of the obligation at the date of adopting AASB 119 (revised) ;
(b)    minus the fair value, at the date of adoption, of plan assets (if any) out of which the obligations are to be settled directly;
(c)    minus any past service cost that shall be recognised in later periods.

AASB 119.154

understandability

Information provided in financial reports has the quality of understandability when is comprehensible to users who have a reasonable knowledge of business and economic activities and accounting and a willingness to study the information with reasonable diligence.

Means that quality of financial information which exists when users of that information are able to comprehend its meaning.

F.25

AAS 29.17.1

unguaranteed residual value

That portion of the residual value of the leased asset, the realisation of which by the lessor is not assured or is guaranteed solely by a party related to the lessor.

AASB 117.4

Either:
(a)    the period over which an asset is expected to be available for use by an entity; or
(b)    the number of production or similar units expected to be obtained from the asset by the entity.

AASB 116.6, AASB 136.6, AASB 138.8

value in use

The present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life.

AASB 5.A (AASB 136.6)

venturer

A party to a joint venture that has joint control over that joint venture.

AASB 131.3

vested benefits

Benefits, the members’ rights to which, under the terms of a superannuation plan, are not conditional upon continued plan membership or any factor other than resignation from the plan.

AAS 25.10

vesting conditions

The conditions that must be satisfied for the counterparty to become entitled to receive cash, other assets or equity instruments of the entity, under a share-based payment arrangement. Vesting conditions include service conditions, which require the other party to complete a specified period of service, and performance conditions, which require specified performance targets to be met (such as a specified increase in the entity’s profit over a specified period of time) .

AASB 2.A

vesting period

The period during which all the specified vesting conditions of a share-based payment arrangement are to be satisfied.

AASB 2.A

warrant

A financial instrument that gives the holder the right to purchase ordinary shares.

AASB 133.5

weighted average cost method

Under this method, the cost of each item is determined from the weighted average of the cost of similar items at the beginning of a period and the cost of similar items purchased or produced during the period.  The average may be calculated on a periodic basis, or as each additional shipment is received, depending upon the circumstances of the entity.

AASB 102.27

wholly-owned group

(a)    In relation to an entity which is a wholly-owned controlled entity, the group of entities comprising:
         (i)     the ultimate parent entity which          has an ownership interest of          100% in the entity; and
         (ii)    the wholly-owned controlled          entities of that parent entity; or
(b)    in relation to an entity which is not a wholly-owned controlled entity, the group of entities comprising that entity and the wholly-owned controlled entities of that entity.

AAS 22.13