Accumulated Depreciation (IFRS): The total amount of depreciation expense that has been recorded against a fixed asset since its acquisition.

Amortization: The gradual reduction of the value of an intangible asset over its useful life.

Amortized Cost (IFRS 9): The amount at which the financial asset or financial liability is measured at initial recognition minus principal repayments, plus or minus the cumulative amortization using the effective interest method of any difference between the initial amount recognized and the maturity amount, and adjusted for any loss allowance.

Annual Improvements to IFRS: Minor changes and clarifications made to IFRS standards as part of an annual cycle to address unintended consequences, conflicts, or oversights.

Annuity Method of Depreciation (IFRS): A depreciation technique where the charge is calculated annually based on the book value at the start of each year, often used for assets where the economic benefits are expected to be realized evenly over their useful life.

Asset: A resource controlled by an entity as a result of past events and from which future economic benefits are expected.


Balance Sheet (IFRS Statement of Financial Position): A financial statement that summarizes a company’s assets, liabilities, and shareholders’ equity at a specific point in time.

Bargain Purchase Option (IFRS 16): An option that allows the lessee, at the end of the lease term, to purchase the leased asset at a price significantly lower than the expected fair market value.

Business Combinations under Common Control (IFRS 3): Transactions in which all the combining entities or businesses are ultimately controlled by the same party both before and after the combination, and that control is not transitory.


Capital Maintenance (IFRS Framework): A concept in accounting that ensures the capital of the company is maintained, and it measures profits only after the capital has been maintained, or in other words, maintaining the purchasing power of capital.

Capitalization Criteria (IFRS 15): The guidelines that determine whether costs incurred will be recognized as capital assets rather than expenses, focusing on whether these costs are expected to provide future economic benefits.

Component of an Entity (IFRS 5): A part 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 coordinated 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.

Consolidated Financial Statements: Financial statements that show the financial results of a parent company and its subsidiaries as if they were a single entity.

Cost Model: A method of valuing an asset based on its original cost minus any depreciation, amortization, or impairment costs.


Deferred Revenue (IFRS 15): Income received by a company for goods or services which have yet to be delivered or performed, which is recorded as a liability until the revenue can be recognized.

Derivative: A financial instrument whose value is based on the underlying asset, index, or rate.

Disclosure: The process of making essential financial information available to investors and the public.

Disposal Group (IFRS 5): A group of assets, possibly with associated liabilities, that an entity intends to dispose of in a single transaction and is classified as held for sale.


Economic Life (IFRS): The period over which an asset is expected to be economically usable by one or more users, often used in the context of depreciation and amortization policies.

Effective Interest Rate (IFRS 9): 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 the financial asset or to the amortized cost of the financial liability.

Embedded Derivative (IFRS 9): A component of a hybrid contract that also includes a non-derivative host, with the effect that some of the cash flows of the combined instrument vary in a way similar to a standalone derivative.

Equity Instrument (IFRS 9): Any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.

Equity: The value of the shares issued by a company, representing ownership in the company.

Exchange Differences (IFRS 21): Results of changes in foreign exchange rates on the conversion of one currency into another.

Exchange Rate Effects (IFRS 21): The impact on financial statements of converting amounts expressed in one currency into another currency at different exchange rates.

Expense: Outflows or other depletions of assets or incurrences of liabilities during a period from delivering or producing goods, rendering services, or carrying out other activities.


Fair Value Measurement (IFRS 13): Guidelines on how to measure the fair value of assets and liabilities within a consistent and predictable framework.

Fair Value Option (IFRS 9): The choice given by IFRS 9 to an entity to measure at fair value both financial assets and financial liabilities on initial recognition.

Fair Value Through Profit or Loss (IFRS 9): A classification for financial instruments which states that changes in fair value are recognized in profit or loss as they arise.

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.

Financial Instruments (IFRS 9): Contracts that give rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Financial Liability (IFRS 9): Any liability that is a contractual obligation to deliver cash or another financial asset to another entity or to exchange financial instruments with another entity under conditions that are potentially unfavorable.


Goodwill: An asset representing future economic benefits arising from assets that are not capable of being individually identified and separately recognized.

Greenhouse Gas Emissions Rights (IFRS): Rights allocated under an emission trading scheme, which are considered intangible assets under IFRS and accounted for using the intangible asset model.


Hedge Accounting: Accounting for a hedge as one entry, which recognizes the offsetting nature of gains and losses on the hedged item and the hedging instrument.

Hedge Effectiveness (IFRS 9): The extent to which changes in the fair value or cash flows of the hedging instrument offset changes in the fair value or cash flows of the hedged item.

Hedging Instruments (IFRS 9): Financial instruments used to offset the risk of changes in the fair value or cash flows of other recognized assets or liabilities or firm commitments.

Hybrid Instruments (IFRS 9): Financial instruments that contain both a debt and an equity element, where the equity element is embedded in the debt instrument.


Impairment of Financial Assets (IFRS 9): A process to identify and measure the impairment loss of a financial asset based on expected credit losses.

Impairment: A permanent decline in the recoverable amount of a fixed asset or goodwill.

Income Statement (IFRS Statement of Profit or Loss): A financial report that gives a summary of a company’s performance over a specific period, detailing revenue and expenses leading to net profit or loss.

Initial Recognition (IFRS): The process of recording an asset or liability for the first time in the financial statements when it meets the recognition criteria of the applicable IFRS.


Joint Operation (IFRS 11): A joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement.

Joint Venture: A contractual arrangement whereby two or more parties undertake an economic activity that is subject to joint control.

Jointly Controlled Assets (IFRS 11): Assets that are controlled and managed jointly by two or more parties under a joint arrangement, each party having rights to the assets and obligations for the liabilities.

Jointly Controlled Operations (IFRS 11): A joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement.


Key Management Personnel: Those persons having authority and responsibility for planning, directing, and controlling the activities of an entity, directly or indirectly.

Key Management Personnel Compensation (IFRS 24): Compensation provided to key management personnel, which requires disclosure under IFRS due to its potential impact on the financial position and performance of the entity.

Key Performance Indicators (KPIs) in IFRS Disclosure (IFRS): Quantifiable measures used to evaluate the success of an organization in meeting objectives for performance, often required in the management commentary under IFRS.

KPIs (Key Performance Indicators): Financial and non-financial metrics used to help an organization define and measure progress toward organizational goals, often used in financial analysis and reporting.


Lease Incentives (IFRS 16): Payments made by a lessor to or on behalf of a lessee, or reimbursement of lessee’s costs, to incentivize the lessee to sign a lease agreement.

Lessor (IFRS 16): A party that leases an asset to another party (lessee) under a lease agreement, which can be either a finance lease or an operating lease as per IFRS standards.

Liability: A present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits.

Liability Adequacy Test (IFRS 4): A test required under IFRS for insurance contracts to ensure that recognized liabilities are adequate to cover reported insurance obligations.

Materiality: The importance of information which could influence decisions that users make on the basis of the financial statements.

Measurement Period (IFRS 3): The period after the acquisition date during which the acquirer may adjust the provisional amounts recognized for a business combination.

Measurement Reliability (IFRS Framework): The degree to which a measurement is expected to represent faithfully the conditions and events that it aims to measure, without error or bias.

Measurement Uncertainty (IFRS): The inability to precisely determine the value of changes in assets and liabilities over a period.


Net Realizable Value: The estimated selling price in the ordinary course of business, less the estimated costs of completion and the necessary selling expenses.

Non-adjusting Events after the Reporting Period (IFRS 10): Events after the reporting period that do not provide evidence of conditions that existed at the end of the reporting period.

Non-cancellable Lease (IFRS 16): A lease that can only be cancelled by: (a) the lessee’s incurring a penalty; (b) the occurrence of some remote contingency; or (c) agreement of both the lessor and the lessee.

Non-controlling Interest (IFRS 10): The equity in a subsidiary not attributable, directly or indirectly, to a parent.


Onerous Contracts (IFRS 37): Contracts in which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it.

Operating Segments (IFRS 8): Components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision-maker in deciding how to allocate resources and in assessing performance.

Other Comprehensive Income: Income that includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.


Performance Conditions (IFRS 2): Conditions that relate to the performance of the entity, or of a business unit, or of an individual employee to which the performance of the entity or part of it is linked.

Performance Obligations (IFRS 15): A promise in a contract with a customer to transfer to the customer either: a good or service (or a bundle of goods or services) that is distinct; or a series of distinct goods or services that are substantially the same and have the same pattern of transfer.

Presentation of Financial Statements (IFRS 1): The guidelines for the structure and content of financial statements along with the minimum requirements for their content.

Pro Forma Financial Information (IFRS 3): Financial information that shows what the significant effects on the historical financial information might have been had the business combination or the disposal been completed at an earlier date.


Qualifying Insurer (IFRS 4): An insurer that is permitted, in some jurisdictions, to measure liabilities that arise under insurance contracts with reference to specified assets, including liabilities that require the entity to pay benefits that are directly linked to the assets.

Qualifying Swap (IFRS 9): A swap or derivative that meets specific hedge accounting criteria under IFRS, allowing it to be designated as a hedging instrument.

Qualitative Characteristics of Financial Information: Characteristics that determine the usefulness of information provided in financial statements for decision-making.


Reinsurance Contracts Held (IFRS 17): Contracts under which one entity (the cedent) obtains reinsurance by transferring significant insurance risk to another entity (the reinsurer).

Revenue Recognition (IFRS 15): The process of recording revenue in the financial statements, guided by the principle that revenue is recognized when control of goods or services is transferred to the customer.


Segment Reporting (IFRS 8): The reporting of financial information by separate segments of a business to provide a closer look at the company’s performance in different areas.

Share-based Payment Transaction (IFRS 2): A transaction in which the entity receives goods or services as consideration for its own equity instruments 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.

Statement of Changes in Equity (IFRS): A required financial statement that summarizes the movement in equity holders’ funds during the period, detailing movements due to profit or loss, each item of other comprehensive income, and transactions with owners in their capacity as owners.

Subsequent Measurement (IFRS): The accounting processes and methods applied to assets, liabilities, income, and expenses after their initial recognition in financial statements.


Tax Expense (IFRS 12): The aggregate amount included in the determination of net profit or loss for the period in respect of current tax and deferred tax.

Trade Receivables (IFRS 9): Receivables that originate from the sale of goods or services to customers.

Transaction Costs (IFRS 9): Incremental costs that are directly attributable to the acquisition, issue, or disposal of a financial asset or financial liability.

Transaction Price (IFRS 15): The amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties.


Unrealized Gains and Losses (IFRS): Increases or decreases in the value of assets that are not yet realized through a sale or other transaction.

Useful Life of an Intangible Asset (IFRS 38): The period over which an asset is expected to be available for use by an entity or the number of production or similar units expected to be obtained from the asset.

Useful Life: The period over which an asset is expected to be available for use by an entity or the number of production or similar units expected to be obtained from the asset.


Valuation Techniques: Approaches to assessing the fair value of assets and liabilities, including the use of market, income, and cost approaches.

Variable Consideration (IFRS 15): Part of the transaction price which is contingent on the outcome of future events.

Variable Lease Payments (IFRS 16): Lease payments that vary because of changes in facts or circumstances occurring after the commencement date, other than the passage of time.

Vesting Conditions (IFRS 2): The conditions that must be satisfied for the employee to be entitled to receive cash, other assets, or equity instruments of the entity, under the terms of a share-based payment arrangement.


Warranty Provisions (IFRS 15): Obligations that require a company to incur expenses to rectify a product sold under warranty, which are recognized as a provision.

Waste Electrical and Electronic Equipment (IFRS): Equipment that is waste within the meaning of Directive 2002/96/EC (WEEE Directive), which requires separate collection and environmentally sound disposal.

Working Capital: The measure of a company’s operational efficiency and short-term financial health, calculated as current assets minus current liabilities.


Xenocurrency Transactions (IFRS): Transactions denominated in a currency other than the entity’s functional currency. Such transactions require special treatment under IFRS, including initial recognition, subsequent measurement, and the recognition of exchange differences.


Year-end Fair Value Disclosures (IFRS 13): Disclosures required to provide information that enables users of the financial statements to assess the methods and inputs used to develop fair value measurements.

Yield Curve (IFRS 9): A graphical representation used in financial management to plot the interest rates of bonds having equal credit quality but differing maturity dates.

Yield Curve Risk (IFRS 9): The risk of experiencing losses due to changes in the yield curve, which affect the value of bonds and other interest rate-sensitive instruments.

Yield Curves (IFRS 13): Curves that plot the interest rates of bonds (having equal credit quality) against their maturities, from which discount rates are derived for financial reporting.

Yield: The income return on an investment, such as interest or dividends, received from holding a particular security.


Zero Coupon Bonds (IFRS 9): Bonds that do not pay periodic interest and are issued at a substantial discount to their face value.

Zero Interest Bearing Note (IFRS 9): A debt instrument issued at a discount to its redemption value that does not offer interest payments.

Zero Interest Financing (IFRS 9): Financing transactions that involve no interest rate or an interest rate significantly below market rates, often requiring special measurement considerations under IFRS.