Cutie patootie flashcards
(192 cards)
1
Q
Ethics
A
A set of moral principles guiding behaviour.
2
Q
Safeguards
A
actions individually or in combination that the accountant takes that effectively reduce threats to an acceptable level.
3
Q
Distributed ledger
A
A digital database that is shared across multiple participants (at different sites, geographies or organisations).
Any changes made to the database are copied to all participants almost instantly.
4
Q
Recognition
A
The process of capturing for inclusion in the statement of financial position or statement of financial performance an item that meets the definition of an element.
5
Q
Prudence
A
The exercise of caution when making estimates under conditions of uncertainty, such that assets and income are not overstated and liabilities and expenses are not understated.
6
Q
General purpose financial statements
A
Are intended to meet the needs of users who are not in a position to demand reports tailored to specific
information needs.
7
Q
Material
A
information is material if omitting, misstating or obscuring it could reasonably be expected to influence
decisions that the primary users of general purpose financial statements make on the basis of those financial
statements, which provide financial information about a specific reporting entity.
8
Q
Component of an entity
A
operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the entity.
9
Q
Contract
A
An agreement between two or more parties that creates enforceable rights and obligations.
10
Q
Customer
A
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.
11
Q
Performance obligation
A
A promise in a contract to transfer to a customer:
a good or service (or a bundle of goods/services) that is distinct; or
a series of goods/services that are substantially the same and are transferred in the same way.
12
Q
Transaction price
A
The amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods/services to a customer excluding amounts collected for third parties (e.g. sales tax).
13
Q
Stand alone selling price
A
The price at which an entity would sell a promised good/service separately to a customer.
14
Q
Licence
A
A permission that establishes a customer’s rights to the intellectual property (IP) of an entity.
15
Q
Price period errors
A
omissions from, and misstatements in, financial statements for one or more prior periods arising from the
failure to use, or misuse of, reliable information that was available and could reasonably be expected to have
been obtained when those prior period financial statements were authorised for issue.
16
Q
Cryptocurrency
A
An intangible digital token representing currency that is recorded using a distributed ledger infrastructure,
often referred to as a blockchain.
17
Q
Residual value
A
The estimated amount currently obtainable on disposal of an asset, after deduction of any disposal costs, on the
basis that the asset were already of the age and in the condition expected at the end of its useful life.
18
Q
Investment property
A
Property (land and/or building or part thereof) held (by the owner or a lessee as a right-of-use asset) to earn
rentals or for capital appreciation or both, rather than for:
use in the production/supply of goods/services or for administrative purposes; or
sale in the ordinary course of business.
19
Q
Active market
A
a market in which transactions for the asset/liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis.
20
Q
Qualifying asset
A
An asset that necessarily takes a substantial period of time to get ready for its intended use or sale.
21
Q
Costs of disposal
A
Incremental costs directly attributable to the disposal of an asset, excluding finance costs and income tax
expense.
22
Q
Corporate assets
A
Assets, other than goodwill, that contribute to the future cash flows of both the CGU under review and other
CGUs.
23
Q
Financial instrument
A
Any contract which gives rise to both a financial asset of one entity and a financial liability or equity instrument of another entity.
24
Q
Executory contract
A
A contract that is equally unperformed (i.e. neither party has fulfilled any of its obligations or both have partially fulfilled their obligations to an equal extent).
25
Lease modification
A change in the scope of a lease, or the consideration for a lease, that was not part of the original terms and conditions of the lease.
26
Finance lease
A lease that transfers substantially all risks and rewards incidental to ownership of the underlying asset.
27
Operating lease
A lease that does not transfer substantially all the risks and rewards incidental to ownership of the underlying asset.
28
Past service cost
The change in present value of the defined benefit obligation for employee service in prior periods, resulting from a plan amendment or a curtailment.
29
Settlement
A transaction that eliminates all further legal or constructive obligations for all or part of the benefits provided
under a defined benefit plan (other than a payment of benefits to, or on behalf of, employees that is set out in
the plan and included in the actuarial assumptions).
30
Asset ceiling
The present value of any economic benefits available in the form of refunds from the plan or reductions in future contributions to the plan.
31
Tax base of an asset or liability
The amount attributed to that asset or liability for tax purposes.
32
Temporary differences
Differences between the carrying amount of an asset or liability and its tax base. Temporary differences may be
either taxable or deductible.
33
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.
34
Events after the reporting date
Those events, favourable and unfavourable, that occur between the reporting date and the date on which the
financial statements are authorised for issue. They are classified as adjusting and non-adjusting.
35
Grant date
The date when the parties to the arrangement have a shared understanding of its terms and conditions.
36
Control
Exists when the investor 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.
37
Investment entity
An entity which:
obtains funds from one or more investors for the purpose of providing those investors with
investment management services;
commits to those investors that its business purpose is to invest funds solely for returns from capital
appreciation or investment income (or both); and
measures and evaluates the performance of substantially all of its investments on a fair value basis.
38
Goodwill
An asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognised.
39
Business model
A company’s system of transforming inputs, through its business activities, into outputs and outcomes that aim to fulfil the organisation’s strategic purposes and create value over the short, medium and long term.
40
Chief operating decision maker (CODM)
Describes the function which allocates resources to and assesses the performance of operating segments (e.g. a CEO or board of directors).
41
Non-GAAP financial measure
A numerical measure of a current, historical or future financial performance, financial position or cash flow
that is not a GAAP measure. – International Organisation of Securities Commissions (IOSCO)
42
Big data
Extremely large data sets that may be analysed computationally to reveal patterns, trends and associations, especially relating to human behaviour and interactions.
43
Artificial intelligence
The ability of a computer to perform tasks that are commonly associated with human intelligence.
44
Machine learning
Using networks, statistics and operational research to identify insights in data without being programmed what to conclude.
45
Service type (extended) warranty
A warranty that provides a customer with a service in addition to the assurance that the product meets agreed-
upon specifications.
46
Assurance type (standard) warranty
A warranty that provides a customer with assurance that the related product will function as the parties intended because it meets agreed upon considerations.
47
Intangible asset
An identifiable non-monetary asset without physical substance.
48
Asset
A resource:
controlled as a result of past events; and
cfrom which future economic benefits are expected to flow.
49
Hedge effectiveness
The degree to which changes in the fair value or cash flows of the hedged item which are attributable to a hedged risk are offset by changes in the fair value or cash flows of the hedging instrument.
50
Hedge ratio
The relationship between the quantity of the hedging instrument and the quantity of the hedged item in terms of their relative weighting.
51
Asset
a present economic resource controlled by the entity as a result of past events.
52
Economic resource
A right that has the potential to produce economic benefits.
53
Liability
A present obligation of the entity to transfer an economic resource as a result of past events.
54
Equity
The residual interest in the assets of the entity after deducting all its liabilities.
55
Income
Increases in assets or decreases of liabilities that result in increases in equity other than those relating to contributions from holders of equity claims.
56
Expenses
Decreases in assets or increases in liabilities that result in decreases in equity other than those relating to distributions to holders of equity claims.
57
Fair value (IFRS 13)
The price which would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
58
highest and best use
the use of a non-financial asset by market participants that would maximise the value of the asset or the group of assets and liabilities (e.g. a business) within which the asset would be used.
59
Principal market
The market with the greatest volume and level of activity for the asset/liability.
60
Most advantageous market
the market that maximises the fair value of an asset (or minimises the fair value of a liability), after taking transaction and transport costs into account.
61
Biological asset
A living animal or plant
62
Biological transformation
The processes of growth, degeneration, production and procreation that cause qualitative and quantitative changes in a biological asset.
63
Harvest
The detachment of produce from a biological asset or the cessation of a biological asset's life.
64
Costs to sell
The incremental costs directly attributable to the disposal of an asset excluding finance costs and income taxes.
65
A change in accounting estimate
An adjustment to the carrying amount of an asset or liability, or the amount of the periodic consumption of an
asset, which results from the assessment of the present status of, and expected future benefits and obligations
associated with, assets and liabilities. These changes result from new information or developments and are not
corrections of errors.
66
Accounting policies
The specific principles, bases, conventions, rules and practices applied in preparing and presenting financial statements.
67
Initial Coin Offering (ICO)
Funds raised through the issue of crypto assets (in the form of digital “tokens” or “coins”) in exchange for either:
fiat currency (money without intrinsic value but backed by a government authority, e.g. euros); or
an established cryptocurrency (e.g. bitcoin).
68
Cash generating unit (CGU)
The smallest identifiable group of assets which generate cash inflows that are largely independent of the cash inflows from other assets or groups of assets.
69
Impairment loss
The amount by which the carrying amount of an asset (or cash generating unit) exceeds its recoverable amount.
70
Recoverable amount
The higher of fair value less costs of disposal and value in use of an asset.
71
Value in use
The present value of the future cash flows expected to be derived from an asset.
72
Financial asset
Any asset that is:
cash;
a contractual right to receive cash or another financial asset from another entity;
a contractual right to exchange financial instruments with another entity under conditions that are
potentially favourable;
an equity instrument of another entity;
certain contracts that will (or may) be settled in the entity's own equity instruments.
73
Financial liability
Any liability that is a contractual obligation:
to deliver cash or another financial asset to another entity;
to exchange financial instruments with another entity under conditions that are potentially
unfavourable;
certain contracts that will (or may) be settled in the entity's own equity instruments.
74
Equity instrument
Any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.
75
Derivative
a financial instrument with all three of the following characteristics:
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”);
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;
it is settled at a future date.
76
Amortised cost
Of a financial asset or financial liability:
the amount at which it was measured at initial recognition;
minus
principal repayments;
plus or minus
the cumulative amortisation (using the effective interest method) of any difference between that
initial amount and the maturity amount; and
for financial assets, adjusted for any loss allowance.
77
Effective interest method
The method used to calculate the amortised cost of a financial asset or a financial liability and in the allocation and recognition of the interest (revenue or expense) in profit or loss over the relevant period.
78
Effective interest rate
The rate that exactly discounts estimated future cash payments or receipts through the expected life of the
financial instrument to the gross carrying amount of a financial asset (or amortised cost of a financial liability).
79
Transaction costs
Incremental costs that are directly attributable to the acquisition, issue or disposal of a financial asset (or financial liability).
80
Past due
A financial asset is past due when the debtor has failed to make a payment that was contractually due.
81
Impairment gains or loss
Gains or losses recognised in profit or loss that arise from the impairment requirements of IFRS 9.
82
Credit loss
The difference between all contractual cash flows that are due to be received and those expected to be received (i.e. all cash shortfalls), discounted at the original effective interest rate.
83
Expected credit losses
The weighted average of credit losses with the respective risks of a default occurring as the weights.
84
Lifetime expected credit losses
The expected credit losses that result from all possible default events over the expected life of a financial instrument.
85
12-month expected credit losses
The portion of lifetime expected credit losses that are possible within 12 months after the reporting date.
86
Loss allowance
The allowance for expected credit losses on:
financial assets measured at amortised cost or FVTOCI;
lease receivables;
contract assets (under IFRS 15); and
loan commitments and financial guarantee contracts.
87
Lease
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.
88
Right-of-use asset
An asset that represents a lessee's right to use an underlying asset for the lease term.
89
Interest rate implicit in the lease
The rate of interest at which the present value of the lease payments and any unguaranteed residual value equal the sum of the fair value of the underlying asset and any initial direct costs of the lessor.
90
Fair value (IFRS 16)
The amount for which an asset could be exchanged, or liability settled, between knowledgeable, willing parties in an arm's length transaction.
91
Short-term lease
A lease that at the commencement date has a lease term of 12 months or less and does not have a purchase option.
92
Underlying asset
An asset that is the subject of a lease, for which the right to use that asset has been provided by a lessor to a lessee.
93
Lease term
The non-cancellable period for which a lessee has the right to use an underlying asset, together with both periods covered by an option:
to extend the lease if the lessee is reasonably certain to exercise that option;
and
to terminate the lease if the lessee if reasonably certain not to exercise that option.
94
Employee benefits
All forms of consideration given in exchange for service rendered by employees, or for the termination of employment.
95
Short-term employee benefits
Employee benefits (other than termination benefits) that are expected to be settled wholly within 12 months after the end of the reporting period in which the employees render the related service.
96
Other long-term employee benefits
All employee benefits other than short-term employee benefits, post-employment benefits and termination benefits.
97
Post-employee benefits
Employee benefits (other than termination benefits and short-term benefits) which are payable after the completion of employment.
98
Post-employment benefit plans
Formal or informal arrangements under which an entity provides post-employment benefits for one or more employees.
99
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.
100
Defined benefit plans
Post-employment benefit plans other than defined contribution plans.
101
Present value of a defined benefit obligation
The present value, without deducting any plan assets, of expected future payments required to settle the obligation resulting from employee service in the current and prior periods.
102
Net interest in the net defined liability (asset)
The change during the period in the net defined benefit liability (asset) that arises from the passage of time.
103
Actuarial gains and losses
Changes in the present value of the defined benefit obligation resulting from:
experience adjustments (the effects of differences between the previous actuarial assumptions and
what has actually occurred); and
the effects of changes in actuarial assumptions.
104
Accounting profit
Profit or loss for a period before deducting tax expense.
105
Taxable profit (tax loss)
The profit (loss) for a period, determined in accordance with the rules established by the taxation authorities, on which income taxes are payable (recoverable).
106
Current tax
The amount of income taxes payable (recoverable) in respect of the taxable profit (tax loss) for a period.
107
Defined tax liabilities
The amounts of income taxes payable in future period in respect of taxable temporary differences.
108
Defined tax assets
The amounts of income taxes recoverable in future periods in respect of:
deductible temporary differences;
the carry forward of unused tax losses; and
the carry forward of unused tax credits.
109
Taxable temporary differences
Temporary differences that will result in taxable amounts in determining taxable profit (tax loss) of future periods when the carrying amount of the asset or liability is recovered or settled; or
110
Deductible temporary differences
Temporary differences 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.
111
Provision
A liability of uncertain timing or amount.
112
Liability
A present obligation arising from past events, the settlement of which is expected to result in an outflow of resources embodying economic benefits.
113
Obligating event
An event which creates a legal or constructive obligation which results in no realistic alternative but to settle that obligation.
114
Legal obligation
An obligation which derives from the operation of law (i.e. a contract, legislation or other operation of law).
115
Constructive obligation
An obligation which derives from an entity's actions where:
by an established pattern of past practice, published policies or a sufficiently specific current statement, it has indicated to other parties that it will accept certain responsibilities; and
as a result, it has created a valid expectation in those other parties that it will discharge those
responsibilities.
116
Contingent liability
A possible obligation which arises from past events and whose existence will be confirmed only on
the occurrence or non-occurrence of one or more uncertain future events, which are not wholly
within the entity’s control;
or
A present obligation which arises from past events but is not recognised because:
an outflow of resources is not probable; or
the amount of the obligation cannot be measured with sufficient reliability.
117
Contingent asset
A possible asset which 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 entity’s control.
118
Restructuring
A programme which is planned and controlled by management, and materially changes either:
the scope of a business undertaken; or
the manner in which that business is conducted.
119
Cash-settled share-based payment transaction
one 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 equity instruments
(including shares or share options) of the entity or another group entity.
120
Vest
To become an entitlement. A party's right to shares of an entity may be free or at a prearranged exercise price.
121
Share-based payment transaction
A transaction in a share-based payment arrangement in which the entity:
receives goods or services from a supplier (including an employee); or
incurs an obligation (to the supplier) when another group entity receives those goods or services.
122
Share option
A contract that gives the holder the right, but not the obligation, to subscribe to the entity's shares at a fixed (or determinable) price for a specified period of time.
123
Vesting conditions
The conditions that must be satisfied for a person to become entitled to receive cash, other assets or equity instruments under a share-based payment arrangement.
124
Service condition
A vesting condition requiring the director or employee to complete a specified period of service. If the director
(or employee) ceases to provide service during the vesting period he fails to satisfy the condition.
125
Performance condition
A vesting condition that requires a service condition; and
specified performance targets to be met in rendering that service.
126
Performance target
Refers to the entity's operations or the price of its shares. It may relate to the performance of the entity as a whole or a component (e.g. a division).
127
Business combination
A transaction or other event in which the acquirer obtains control of one or more businesses.
128
Subsidiary
An entity controlled by another entity (the parent).
129
Parent
An entity which controls one or more entities.
130
Group
A parent and its subsidiaries.
131
Consolidated financial statements
The financial statements of a group in which the assets, liabilities, equity, income, expenses and cash flows of the parent and its subsidiaries are presented as those of a single economic entity.
132
Related party
A person or entity that is related to the entity that is preparing its financial statements.
133
Close member of family
A family member who may be expected to influence, or be influenced by, that person in their dealings with the entity and include:
that person's children and spouse/domestic partner;
children of that person's spouse/domestic partner;
dependants of that person or their spouse/domestic partner.
134
Related party transactions
A transfer of resources, services or obligations between a reporting entity and a related party, regardless of whether a price is charged.
135
Government
Government, government agencies and similar bodies whether local, national or international.
136
Government related entity
An entity that is controlled, jointly controlled or significantly influenced by a government.
137
Associate
An entity over which the investor has significant influence.
138
Joint arrangement
An arrangement in which two or more parties have joint control.
139
Joint control
The contractually agreed sharing of control of an arrangement, which exists only when the decisions about the relevant activities require the unanimous consent of the parties sharing control.
140
Joint venture
A joint arrangement whereby the parties have rights to the net assets of the arrangement.
141
Joint operation
A joint arrangement whereby the parties have rights to the assets and obligations for the liabilities relating to the arrangement.
142
Significant influence
The power to participate in the financial and operating policy decisions of the investee but is not control or joint control of those policies.
143
Equity method
The investment is initially recognised at cost and adjusted thereafter for the post-acquisition change in the
investor's share of the investee's net assets. The investor's profit or loss/OCI includes its share of the investee's
profit or loss/OCI.
144
Integrated associates
Do not generate a return individually and largely independently of other company assets.
145
Non-integral associates
Generate a return individually and largely independently of other company assets.
146
Functional currency
The currency of the primary economic environment in which the entity operates.
147
Presentation currency
The currency in which the financial statements are presented.
148
Foreign currency
A currency other than the functional currency of the entity.
149
Closing rate
The spot exchange rate at the end of the reporting period.
150
Net investment in a foreign entity
The amount of the reporting entity's interest in the net assets of that operation.
151
Monetary items
Money held and assets and liabilities to be received or paid in a fixed or determinable number of units of currency.
152
Spot exchange rate
The exchange rate for immediate delivery.
153
Foreign operation
A subsidiary, associate, joint arrangement or branch of the reporting entity, the activities of which are based or conducted in a country or currency other than the country of the reporting entity.
154
Management performance measures (MPMs)
Subtotals of income and expenses that:
are used in public communications outside financial statements;
complement totals or subtotals specified by IFRS Standards;
communicate management’s view of an aspect of a company’s financial performance.
155
Management commentary
A narrative report that relates to financial statements that have been prepared in accordance with IFRS
Standards. It provides users with historical explanations of the amounts presented in the financial statements. It
also provides commentary on an entity's prospects and other information not presented in the financial statements. It also serves as a basis for understanding management's objectives and its strategies for achieving
those objectives.
156
Sustainability reporting
an organisation’s practice of reporting publicly on its economic, environmental and/or social impacts, and
hence its contributions – positive or negative – towards the goal of sustainable development.
157
Integrated thinking
A multi-capital management approach that enables organizations to deliver their purpose to the
benefit of their key stakeholders overtime. It is about creating and preserving value and enabling
better decision-making based on interconnected, multi-capital information.
– The IIRC (VRF)
The conditions and processes that are conducive to an inclusive process of decision making,
management and reporting, based on the connectivity and interdependencies between a range of
factors that affect an organization’s ability to create value over time.
– CIMA
158
Integrated report
A concise communication about how an organisation's strategy, governance, performance and prospects, in the context of its external environment, lead to the creation of value over the short, medium and long term.
159
Date of transition
The beginning of the earliest period for which an entity presents full comparative information under IFRS Standards in its first IFRS financial statements.
160
Current service cost
the increase in the present value of the defined benefit obligation resulting from employee service in the current period.
161
Contract asset
an entity’s right to consideration in exchange for goods or services that the entity has transferred to a customer when that right is conditioned on something other than the passage of time (e.g. the entity’s future
performance).
162
Contract liability
an entity’s obligation to transfer goods or services to a customer for which the entity has received consideration (or the amount is due) from the customer.
163
Accounting estimates
monetary amounts in the financial statements that are subject to measurement uncertainty.
164
Fair value
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.
165
Termination benefits
are employee benefits provided in exchange for the termination of an employee’s employment as a result of
either:
an entity’s decision to terminate an employee’s employment before the normal retirement date;
or
an employee’s decision to accept an offer of benefits in exchange for the termination of
employment.
166
Security tokens
digital assets that represent entitlement to ownership of an asset or equity or debt security of the issuer. By tokenising illiquid assets such as private company shares, a company can monetise these assets. Also recorded
using blockchain.
167
Natural disaster
any hurricane, tornado, storm, flood, high water, wind-driven water, tidal wave, earthquake, landslide, mudslide, snowstorm, drought, fire, explosion or other catastrophe, which results in substantial damage to
property, hardship, suffering or possible loss of life.
168
Climate change
Refers to long-term shifts in temperatures and weather patterns. These shifts may be natural, but since the
1800s, human activities have been the main drivers of climate change, primarily due to the burning of fossil
fuels, which produces heat-trapping gases.
– United Nation
169
Carbon offsetting
Is a mechanism that allows companies to offset their own carbon emissions by investing in environmental projects such as planting trees.
170
Emissions trading schemes
Are arrangements whereby participants receive an allocation of emissions allowances and monitor their
emissions to ensure that they have sufficient allowances to offset them. Companies with a surplus of allowances can sell them to companies with a deficit.
171
Security Token Offering (STO)
A type of public offering in which security tokens are sold on security token exchanges.
172
Grants related to assets
government grants whose primary condition is that an entity qualifying for them should purchase, construct or otherwise acquire long-term assets.
173
Grants related to income
government grants other than those related to assets.
174
Sublease
a transaction for which an underlying asset is re-leased by a lessee (“intermediate lessor”) to a third party, and the lease (“head lease”) between the head lessor and lessee remains in effect.
175
Level 1 inputs
quoted prices in active markets for identical assets or liabilities which the entity can access at the measurement date.
176
Business
an integrated set of activities and assets that is capable of being conducted and managed for the purpose of providing goods or services to customers, generating investment income (e.g. dividends or interest) or
generating other income from ordinary activities.
177
Level 2 inputs
inputs other than quoted prices which are observable for the asset or liability, either directly or indirectly.
178
Level 3 inputs
unobservable inputs for the asset or liability.
179
Value chain
the full range of interactions, resources and relationships related to a reporting entity’s business model and the external environment in which it operates.
180
Business model
an entity’s system of transforming inputs through its activities into outputs and outcomes that aims to fulfil the
entity’s strategic purposes and create value for the entity and hence generate cash flows over the short, medium
and long term.
181
Climate-related risks
the potential negative effects of climate change on an entity.
182
Climate-related opportunities
the potential positive effects arising from climate change for an entity.
183
Users of sustainability statements
primary users of general purpose financial reporting (including asset managers, credit institutions, insurance
undertakings), as well as other users, including the undertaking’s business partners, trade unions and social partners, civil society and non-governmental organisations, governments, analysts and academics.
184
Double materiality
has two dimensions: impact materiality and financial materiality. A sustainability matter is material when it meets the criteria for impact materiality or financial materiality, or both.
185
Opening IFRS statement of financial position
the statement of financial position at the date of transaction to IFRS.
186
First IFRS financial statements
the first annual financial statements in which IFRSs are adopted, by an explicit and unreserved statement of compliance with IFRSs
187
Remeasurements
of the net defined liability (asset) comprise:
Actuarial gains and losses
The return on plan assets, excluding amounts included in net interest on the net defined benefit
liability (asset);
Any change in the effect of the asset ceiling, excluding amounts included in net interest on the net
defined benefit liability (asset).
188
Net defined benefit liability (asset)
is the deficit or surplus, adjusted for any effect of limiting a net defined benefit asset to the asset ceiling.
189
Deficit or surplus
The present value of the defined benefit obligation less
The fair value of plan assets (if any).
190
Plan assets
Assets held by a long-term employee benefit fund; and
Qualifying insurance policies.
191
Return on plan assets
is interest, dividends and other income derived from the plan assets together with realised and unrealised gains or losses on the plan assets, less:
any costs of managing plan assets;
any tax payable by the plan itself, other than tax included in the actuarial assumptions used to
measure the present value of the defined benefit obligation.
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Affected stakeholders
Individuals or groups whose interests are affected or could be affected – positively or negatively – by the undertaking’s activities and its direct and indirect business relationships across its value chain.
