Cash-generating unit -The smallest identifiable group of assets that generates cash in- flows that are largely independent of the cash in- flows from other assets or groups of assets.Class of assets -A grouping of assets of a similar nature and use in an entity’s operations.Depreciation (amortization) -The systematic allocation of the depreciable amount of anasset over its useful life.Recoverable amount- The higher of an asset’s (or cash-generating unit’s) fair value less costs to sell and its value in use.Useful life- 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.Value in use- The present value of the future cash - flows expected to be derived from anasset or cash generating unit.IAS 37: Provisions, Contingent Liabilities and Contingent AssetsContingent assetA 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 entityContingent liability(a) A possible obligation that arises from past events and whose existence will be conformed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity; or IFRS and IAS Glossary of Terms35
(b) A present obligation that arises from past events but is not recognized because:(i) It is not probable that an out- owe of resources embodying economic benefits will be required to settle the obligation; or(ii) The amount of the obligation cannot be measured with sufficient reliabilityLegal obligation- An obligation that derives from: (a) a contract (through its explicit or implicit terms); (b) legislation; or (c) other operation of lawLiability - A present obligation of the entity arising from past events, the settlement of which is expected to result in an out- owe from the entity of resources embodying economic benefits.Obligating event - An event that creates a legal or constructive obligation that results in an entity having no realistic alternative to settling that obligation.Obligation- A duty or responsibility to act or perform in a certain way. Obligations may be legally enforceable as a consequence of a binding contract or statutory requirement. Obligations also arise, however, from normal business practice, custom and a desire to maintain good business relations or act in an equitable manner.Offsetting - See ‘set-off, legal right of’’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 itProvision- A liability of uncertain timing or amount.
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Ma'am Terese de Guzman
Balance Sheet, International Financial Reporting Standards, IAS Glossary of Terms