| Financial Reporting Standard 5 |
Appendix A
Defined terms
This appendix is an integral part of the FRS.
| cash-generating unit | The smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. | | component of an entity | Operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the entity. | | costs to sell | The incremental costs directly attributable to the disposal of an asset (or disposal group), excluding finance costs and income tax expense. | | 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 balance sheet date; or | | (d) | it is cash or a cash equivalent asset unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the balance sheet date. | | | 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. | | | 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 FRS 136 Impairment of Assets or if it is an operation within such a cash-generating unit. | | 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. | | 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. | | highly probable | Significantly more likely than probable. | | non-current asset | An asset that does not meet the definition of a current asset. | | probable | More likely than not. | | recoverable amount | The higher of an asset's fair value less costs to sell and its value in use. | | 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. | |
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