IFRS
FOR
SMES—2015
Appendix B Glossary of terms This Appendix is an integral part of the Standard. accounting policies
The specific principles, bases, conventions, rules and practices applied by an entity in preparing and presenting financial statements.
accounting profit
Profit or loss for a period before deducting tax expense.
accrual basis of accounting
The effects of transactions and other events are recognised when they occur (and not as cash or its equivalent is received or paid) and they are recorded in the accounting records and reported in the financial statements of the periods to which they relate.
accumulating compensated absences
Compensated absences that are carried forward and can be used in future periods if the current period’s entitlement is not used in full.
active market
A market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis.
agricultural activity
The management by an entity of the biological transformation of biological assets for sale, into agricultural produce or into additional biological assets.
agricultural produce
The harvested product of the entity’s biological assets.
amortisation
The systematic allocation of the depreciable amount of an asset over its useful life.
amortised cost of a financial asset or financial liability
The amount at which the financial asset or financial liability is 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 minus any reduction (directly or through the use of an allowance account) for impairment or uncollectability.
asset
A resource controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity.
associate
An entity, including an unincorporated entity such as a partnership, over which the investor has significant influence and that is neither a subsidiary nor an interest in a joint venture.
biological asset
A living animal or plant.
borrowing costs
Interest and other costs incurred by an entity in connection with the borrowing of funds.
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