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12-month ECLs (expected credit losses): are the portion of lifetime ECLs, from possible default events, within 12 months after the reporting date. [Volume 1: 2.7.2]
Abnormal production spoilage: are abnormal amounts of wasted materials, labor, or production overheads. [Volume 1: 3.2.3]
Absolute difference in PVs (present values): is the difference: between the remaining original cash flows; and the new (or modified) cash flows, discounted at the original EIR (effective interest rate). [Volume 2: 1.6.3]
Accounting estimates: are monetary amounts (in financial statements), (1) which are subject to measurement uncertainty; (2) which must be developed (to achieve the objective, of an accounting policy); and (3) which involve the use of judgments (or assumptions), based on the latest available (and faithfully represented) information. [Volume 2: 6.11]
Accounting mismatch: is the measurement of assets (or liabilities), or the recognition of gain (or loss) thereon, on different bases. [Volume 1: 2.2]
Accounting policies: are the specific principles, bases, conventions, rules, and practices, which the entity applies in preparing and presenting financial statements. [Volume 2: 3.10.1]
Accruals: are liabilities for goods (or services) delivered (or rendered) to the entity, but are not yet invoiced (or billed) by the supplier. [Volume 2: 2.1]
Accumulated non-vesting paid absences: are accumulating paid absences, wherein employees are ineligible to cash payment, for unused entitlement to paid absences (upon leaving the entity) [Volume 2: 4.2.2.1]
Accumulated vesting paid absences: are accumulating paid absences, wherein employees are eligible to cash payment, for unused entitlement to paid absences (upon leaving the entity). [Volume 2: 4.2.2.1]
Accumulating paid absences: are short-erm paid absences, wherein any unused portion (of entitlement to paid absences, in current reporting period) can be carried forward and used, in future reporting periods. [Volume 2: 4.2.2.1]
Active market: is a market, wherein transactions occur with sufficient frequency and volume, to provide ongoing price information. [Volume 1: 4.7.4.4.1]
Activity-based depreciation methods: are depreciation methods, whereby level of activity primarily affects the consumption pattern. [Volume 1: 4.6.6.1]
Actual (or compensatory) damages: are damages for injuries (or losses), which are actually sustained, and susceptible of measurement; and which will put the injured party, in the position in which he had been, before he was injured. [Volume 2: 2.5]
Actuarial assumptions: are the entity’s best estimates, of variables that determine the ultimate cost (to provide defined benefits). [Volume 2: 4.5.4.3]
Actuarial gains and losses: are changes in present value of the defined benefit obligation, resulting from: (1) experience adjustments; and (2) effects of changes in actuarial assumptions. [Volume 2: 4.5.7.3.1]
Actuarial risk: is defined, from the viewpoint of either: (1) the entity as employer (wherein it is the risk, that post-employment benefits will be more than expected; or (2) the employee as recipient (wherein it is the risk, that post-employment benefits will be less than expected). [Volume 2: 4.3]
Additional markup: is the increase in retail price above the original retail. [Volume 1: 3.2.7.1]
Adjusted market assessment approach: is the determination (of the estimated stand-alone price), based on the price, which a customer in the market (for the separately identified contract component) is willing to pay, for that component. [Volume 2: 3.5.3]
Adjusting events after the reporting period: are those which prove conditions, which existed at the end of the reporting period. [Volume 2: 2.3]
Agree: means one party tenders an offer, and the other party accepts that offer. [Volume 2: 6.19.5]
Agricultural activity: is the management of the biological transformation and harvest of biological assets, for sale, or conversion into agricultural produce (or additional biological assets). [Volume 1: 7.1]
Allowed (but not encouraged) sources of accounting policies: are these sources (if not conflicting with the required sources): (1) all (not selected) contents of most recent pronouncements, of other standard-setting bodies (with similar conceptual framework, to develop accounting standards); (2) other accounting literature (like this textbook); and (3) accepted industry practices. [Volume 2: 6.11.2]
Allowed change in accounting policy: is a change in accounting policy, which: (1) is required (by an IFRS Accounting Standard); or (2) results to financial statements, which provide faithfully represented, and more relevant information (about effects of transactions, events, or conditions, on the entity’s financial position, financial performance, or cash flows). [Volume 2: 6.11.3]
Alternatively-settled share-based payment transaction: is a share-based payment transaction, wherein the reporting entity, or the supplier of goods or services (including an employee, acting as such), can choose whether the transaction will be cash-settled, or equity-settled. [Volume 2: 6.19.2]
American option: is an option that is exercisable, within a specified period. [Volume 2: 6.19.9]
Amortized cost of debt investment: is the amount, at which the debt investment is measured upon initial recognition, minus any principal repayments, plus (or minus) the cumulative amortization (under the effective interest method), of any difference between the initial gross carrying amount and the maturity amount, and adjusted for any loss allowance. [Volume 1: 2.6.3]
Amortized cost of financial liability: is the amount, at which the financial liability is measured upon initial recognition; minus, any principal repayments; and plus (or minus), the cumulative amortization (under the effective interest method), of any difference between: the initial amortized cost; and the maturity amount. [Volume 2: 1.5.1]
Annual crops: are consumable plants that germinate, grow, bear fruits, and die off, within one year. [Volume 1: 4.3]
APIC (additional paid-in capital): is the premium paid over the par value, which must be, neither: (1) declared as dividends; nor (2) reclassified to absorb deficiency, except through quasi-reorganization, duly approved by the SEC (Securities and Exchange Commission). [Volume 2: 6.8]
Application guidance: is an accompanying guidance, which is an integral part of IFRS Accounting Standards, and includes requirements for financial statements. [Volume 2: 6.11]
Asset ceiling: is the present value of future economic benefits (available to the entity), which is the highest of: (1) cash refund (from the defined benefit plan, to the entity); (2) decrease in future contributions (by the entity, to the defined benefit plan); or (3) combination of both, except when based on mutually exclusive assumptions. [Volume 2: 4.5.5.2]
Assets: are present economic resources, over which the entity has a present right, a potential benefit, and an exclusive control, as a result of past events. [Volume 1: 6.1]
Assets held by long-term employee benefit fund: are assets, which: (1) are held by an entity (a fund), which: (a) is legally separate from the reporting entity; and (b) exists solely to pay (or fund) defined benefits; (2) exclude: (a) non-transferrable financial instruments, which are issued by the reporting entity, and held by the fund; and (b) unpaid contributions, which are due from the reporting entity to the fund; (3) include transferrable financial instruments, which are issued by the entity, and held by the fund (such as listed shares and bonds); (4) are decreased by any liabilities of the fund (unrelated to defined benefits), such as: (a) trade and other payables; and (b) liabilities resulting from derivative financial instruments; (5) can be used, only to pay (or fund) defined benefits; (6) are unavailable to the reporting entity’s own creditors (despite bankruptcy); and (7) cannot be returned to reporting entity, unless: (a) the remaining assets of the fund are sufficient, to fulfill all related defined benefit obligations of the plan (or of the reporting entity); or (b) the assets are returned, to reimburse the reporting entity (for defined benefits already paid). [Volume 2: 4.5.2]
Assets to be abandoned: are those used, until the end of their economic life, and then closed (rather than sold). [Volume 1: 8.2]
Assignment: is a mode of financing, whereby specific trade receivables secure a loan. [Volume 1: 2.8]
Associate: is an entity, over which the investor has significant influence. [Volume 1: 2.9.1]
Assurance-type warranty: is a warranty, wherein the customer: (1) has no option to separately purchase the warranty; and (2) is provided no service (beyond assurance of the agreed-upon product quality). [Volume 2: 2.8]
Authorized capital stock: is the minimum amount of capital, which the corporation will receive (when it issues all its shares). [Volume 2: 6.8]
Bank timing differences: are timing differences for deposit liabilities in the financial institution’s books. [Volume 1: 1.4.1]
Bearer biological assets: are biological assets, for bearing agricultural produce. [Volume 1: 7.5.1.1]
Bearer plants: are living plants that: are used in production (or supply) of agricultural produce; will bear agricultural produce, beyond one reporting period; and have remote likelihood of being sold as agricultural produce, except for incidental scrap sales. [Volume 1: 4.2]
Betterment cost: is a subsequent expenditure on PP&E (property, plant, and equipment), which involves a substitution of a significant part (or the group of all insignificant parts); is deemed as an upgrade from the intended operating condition of the item; and is recognized as decrease in the accumulated depreciation of the item of PP&E. [Volume 2: 2.7]
Bill-and-hold arrangement: is a contract, whereby the entity bills for (but retains physical possession of) the product, and provides custodial services, until transfer to the customer at a point in time in the future (for example, when the customer’s space for the product becomes available, or when the customer’s production schedule already requires use of the product), such that all of these criteria are conformed to: (1) the reason for the arrangement is substantive (such as upon customer’s request); (2) the product is separately identified, as belonging to the customer; (2) the product is currently ready, for physical transfer to the customer; and (4) the entity cannot use the product (or cannot direct the product to another customer). [Volume 2: 3.28.1]
Binomial model: is a lattice option pricing model, which: (1) adopts a dynamic and iterative approach; (2) captures unique aspects (of employee share options); (3) reflects the evolution of the fair value, of a financial instrument (or a market variable); (4) assumes two (or more) possible price movements (during each reporting period), and a risk-neutral world; and (5) results to an estimated fair value, based on assumed changes (in price of a financial instrument), over the contractual life of the call (or put) option. [Volume 2: 6.19.9]
Biological assets: are living animals, or living plants (excluding bearer plants, but including agricultural produce growing thereon until point of harvest) that relate to agricultural activity. [Volume 1: 7.1]
Biological transformation: is the change in quality (or quantity) of biological assets that results from growth, degeneration, procreation, and production. [Volume 1: 7.2]
Black-Scholes-Merton formula: is a closed-form option pricing model, which: (1) is commonly applied, for assessing the value of freely-traded call (or put) option; (2) allows integration of fixed dividends (on shares of stock); (3) assumes that: (a) the call (or put) option is a European option; (a) no transaction costs, margins, or taxes are required; (c) volatility (of the underlying shares) is constant, and is defined as the standard deviation of the continuously compounded rates of return, on the share over a specified period; (d) risk-free interest rate is constant (over time); (e) short selling is allowed; (f) risk-free arbitrage opportunities are absent; (g) log normal returns (continuously compounded rate of return is normally distributed) are present; and (h) security trading is continuous; (4) measures the call (or put) option price, only at one point in time; (5) ignores market conditions, non-vesting conditions, and possible early exercise of an American option; and (6) results to a materially correct price, for call (or put) options with relatively short contractual life, and exercise period. [Volume 2: 6.19.9]
Book timing differences: are timing differences for demand deposits in the depositor entity’s books. [Volume 1: 1.4.1]
Book value per share: is the interest of each ordinary share, in the shareholders’ equity of the corporation. [Volume 2: 6.18]
Borrowing costs: are interest and other costs, that are incurred when funds are borrowed, and that may include: interest expense, measured using the effective interest method; interest on lease liabilities; and foreign exchange adjustment to interest costs. [Volume 1: 4.5.4]
Broadcast rights: are rights, to electronically transmit the products of another entity. [Volume 1: 6.1.3]
Capped interest rate: is a variable market interest, with maximum rate. [Volume 1: 2.2.3]
Cash equivalents: are investments that are short-term, highly liquid, with known maturity value, and with insignificant changes in value. [Volume 1: 1.2]
Cash: is the medium of exchange, which is the basis of measuring transactions, events, or conditions in the financial statements. [Volume 1: 1.1]
Cash management: is the movement among items of cash and cash equivalents, such as investment of excess cash in cash equivalents. [Volume 1: 1.3]
Cash on hand: are currency, checks, or money orders in the custody of the entity. [Volume 1: 1.1]
Cash-settled share-based payment transaction: is a share-based payment transaction, wherein the reporting entity acquires goods (or receives services), by incurring a liability to transfer cash (or other assets) to the supplier thereof (including an employee, acting as such), for amounts that are based on the fair value of equity instruments (including shares, and share options), of the reporting entity (or another group entity). [Volume 2: 6.19.2]
CGU (Cash-generating unit): is the smallest identifiable group of assets, which generates cash inflows that are largely independent from those of other assets (or groups of assets). [Volume 1: 4.7.4.4.1]
Class of identified assets: is a grouping of assets, with similar nature and use (in the entity’s operations). [Volume 2: 3.10.1.1]
Class of Intangible assets: is a grouping of items, with similar nature and use in the operations of the entity, regardless of geographical location, and includes: brand names; mastheads and publishing titles; computer software; licenses and franchises; copyrights, patents and other industrial property rights, and service and operating rights; recipes, formulas, models, designs, and prototypes; and intangible assets under development. [Volume 1: 6.5]
Class of PP&E (property, plant, and equipment): is a grouping of items, with similar nature and use (in the entity’s operations), and includes: (1) land; (2) land and buildings; (3) machinery; (4) ships; (5) aircraft; (6) motor vehicles; (7) furniture and fixtures; (8) office equipment; and (9) bearer plants. [Volume 1: 4.6]
Classification: is the separation of screened particles, into two (or more) mineral products, based on their settling rates in fluid media. [Volume 1: 9.16.5]
Closure phase: is the cessation of mining operations, from decommissioning of mining plant, until issuance of Certificate of Final Relinquishment. [Volume 1: 9.16]
Collared interest rate: is a variable market interest, with maximum and minimum rates. [Volume 1: 2.2.3]
Commercial guano permit: is guano permit, whereby loose (or unconsolidated) guano, and other organic fertilizer deposits are quarried, for commercial sale (or disposition). [Volume 1: 9.15.3]
Commercial sand and gravel permit: is sand and gravel permit, whereby sand, gravel, and other loose (or unconsolidated) materials are quarried, without processing, from an area of up to 5 hectares, for a term of 1 year from issuance date, renewable for another year. [Volume 1: 9.15.2]
Comminution: is the progressive reduction of the ore to optimum liberated sizes, required for beneficiation through a method, suitable to the physicochemical properties of the minerals. [Volume 1: 9.16.5]
Component of the entity: is a CGU (or group of CGUs), whose operations and cash flows are clearly distinguishable, operationally, and for financial reporting, from the remainder of the entity. [Volume 1: 8.8]
Composite depreciation method: is a depreciation method, for a cluster of insignificant parts (or items) with dissimilar useful lives or consumption patterns. [Volume 1: 4.6.6.1.1.1]
Compound financial instrument: is a financial instrument, which (from the issuing entity’s viewpoint) comprises: (1) a financial liability component; and (2) an equity instrument component. [Volume 2: 6.5]
Concentration: is the upgrading of classified particles, into intermediate stage (or final form) for industrial uses, through beneficiation processes, such as leaching, ore sorting, gravity concentration, magnetic separation, electrostatic separation, dense medium separation, and flotation. [Volume 1: 9.16.5]
Consignment arrangement: is a contract, whereby the entity delivers a product to another party (such as distributor or dealer) for sale to end customers, such that any of these criteria is conformed to: (1) the entity controls the product, until a specified event occurs (such as sale of the product to end customers, or until expiry of specified period); (2) the entity can require return of the product, or transfer thereof to a third party (such as another distributor or dealer); or (3) the distributor (or dealer) must pay a deposit, but cannot be obliged to pay for the product. [Volume 2: 3.28.1]
Constructive obligation: is an obligation, resulting from the entity’s established pattern of past practice, published policies, or sufficiently specific statement. [Volume 2: 2.2.2]
Consumable biological assets: are biological assets, for harvest as agricultural produce (or sale as biological assets). [Volume 1: 7.5.1.1]
Consumable stores: are inventories, in the form of supplies to be consumed in the production process (or in the rendering of services). [Volume 1: 3.1]
Contingent asset: is a possible asset, resulting from past events: (1) that usually results from unplanned (or unexpected) events, which result to possible inflow of economic benefits; (2) that will be confirmed by the occurrence (or non-occurrence) of uncertain future events (not wholly within the entity’s control); (3) that is not recognized (in the financial statements), except when the realization (of the related income) is virtually certain; (4) that is disclosed (in the notes to financial statements), if the inflow (of economic benefits) is probable; and (5) that the confirmation (of its existence, after the reporting period) is deemed, as non-adjusting event. [Volume 2: 2.4]
Contingent liability: is an obligation, resulting from past events: (1) that will be confirmed by the occurrence (or non-occurrence) of uncertain future events (not wholly within the entity’s control); or (2) that is not recognized as a provision, because a criterion is not conformed to; and (3) that is disclosed (in the notes to financial statements), unless the outflow (of economic benefits) is remote; but (4) that is recognized as a provision, if confirmed by adjusting events after the reporting period. [Volume 2: 2.3]
Contract assets: are the entity’s conditional rights (except passage of time), to consideration for goods (or services) transferred to a customer. [Volume 1: 2.7]
Contract: is an agreement: that has clear economic consequences between two (or more) parties; that the parties cannot avoid, routinely because of legal enforceability; and that may not be in writing. [Volume 1: 2.1]
Control of the asset: is the ability to: (1) direct the use of (and obtain substantially all, of the remaining benefits from) the asset; and (2) prevent others to direct that use, and obtain those benefits. [Volume 2: 3.28.1]
Co-Production Agreement: is mineral agreement, whereby the Government provides inputs (except mineral resources) to the mining operations. [Volume 1: 9.15.1]
Corporate assets: are assets (except Goodwill), which contribute to the future cash flows, of the CGUs (or groups of CGUs) to which they belong. [Volume 1: 4.7.5.1]
Corporate quasi-reorganization: is the application of the APIC (additional paid-in capital), to eliminate the corporation’s deficit (negative balance in Retained earnings). [Volume 2: 6.14]
Corporate recapitalization: is the readjustment, of the corporation’s capital structure. [Volume 2: 6.13]
Corporation: is an artificial being: (1) with right of succession; and (2) with powers, attributes, and properties expressly authorized by law (or incidental to its existence). [Volume 2: 6.2]
Cost: is the cash (or cash equivalents) paid, fair value of noncash consideration given, or amount attributed to acquire (or construct) an asset. [Volume 1: 4.5]
Costs of disposal: are incremental costs, directly attributable to disposal of the asset (or CGU), except finance costs, business reorganization costs, employee termination benefits, and income tax expense. [Volume 1: 4.7.4]
Costs to sell: are the incremental costs, which are directly attributable to the disposal of the asset (including brokers’ commissions, regulatory fees, and unrecoverable taxes, but excluding finance costs, transport costs, and income tax expense). [Volume 1: 8.4]
Credit memos: are items (such as interest income) already credited to deposit liabilities (in the financial institution’s books), but not yet debited to demand deposits (in the depositor entity’s books). [Volume 1: 1.4.1.1]
Credit-adjusted EIR (effective interest rate): is the rate that exactly discounts, the estimated future cash flows through the expected life, to the amortized cost of the debt instrument. [Volume 1: 2.7.2]
Cumulative and fully participating preferred shares: are preferred shares, entitled to: annual dividend arrearages; current annual dividends; and prorated participating dividends. [Volume 2: 6.18.1]
Cumulative and partially participating preferred shares: are preferred shares, entitled to: annual dividend arrearages; current annual dividends; and limited participating dividends. [Volume 2: 6.18.1]
Cumulative but non-participating preferred shares: are preferred shares, entitled to: annual dividend arrearages; and current annual dividends. [Volume 2: 6.18.1]
Current accounts: are demand deposits, which are withdrawable by check (or through Automated Teller Machines), and may (or may not) be interest-bearing. [Volume 1: 1.1]
Current asset: is an asset, which: will be realized, sold, or consumed in the normal operating cycle; is held primarily for the purpose of trading; will be realized within 12 months after the reporting period; or is cash (or a cash equivalent), unless restricted for exchange (or settlement of liability) for at least 12 months after the reporting period. [Volume 1: 8.2]
Current service cost: is the increase in present value of the defined benefit obligation, resulting from employees’ services in the current reporting period. [Volume 2: 4.5.7.1]
Current tax asset: is the sum of: (1) the amount paid; minus, the expected amount due (for current tax, in prior and current taxable periods; and (2) the benefit related to tax loss (that can be carried back to recover current tax, for a prior taxable period). [Volume 2: 5.2]
Current tax: is the amount of income taxes payable (or recoverable), on taxable profit (or tax loss) for a taxable period. [Volume 2: 5.2]
Current tax liability: is the expected amount due; minus, the amount paid (for current tax, in prior and current taxable periods). [Volume 2: 5.2]
DACA checks: are dishonored checks, which the financial institution stamped as: Drawn Against Closed Account. [Volume 1: 1.4.1.1]
DAIF checks: are dishonored checks, which the financial institution stamped as: Drawn Against Insufficient Funds. [Volume 1: 1.4.1.1]
Damages: are the pecuniary compensation, recompense, or satisfaction for an injury sustained; or the pecuniary consequences, which the law imposes for the breach of some duty (or the violation of some right). [Volume 2: 2.5]
DAUD checks: are dishonored checks, which are Drawn Against Uncollected Deposits, wherein the payee’s remedy is to re-deposit the check on the next banking day. [Volume 1: 1.4.1.1]
Debit memos: are items (such as dishonored checks and service charges) already debited to deposit liabilities (in the financial institution’s books), but not yet credited to demand deposits (in the depositor entity’s books). [Volume 1: 1.4.1.1]
Debt extinguishment gain (or loss): is the present value of remaining original cash flows; minus, incurred fees; and minus, the fair value of the new financial liability. [Volume 2: 1.6.3]
Debt modification gain (or loss): is the present value of remaining original cash flows; minus, incurred fees; and minus, present value of modified future cash flows. [Volume 2: 1.6.3]
Decommissioning: is the dismantlement (and removal) of the asset, from the operating site. [Volume 2: 2.8]
Decrease in authorized capital stock: is the decrease in number of authorized shares, without change in par (or issued) value per share. [Volume 2: 6.15]
Decrease in Revaluation surplus: is the decrease, from the revalued amount, to the higher of, the fair value on revaluation date or the original carrying amount, which is presented as non-reclassifiable loss in other comprehensive income. [Volume 1: 4.6.7]
Deductible temporary differences: are temporary differences, which result to future tax-deductible (or non-taxable) amounts, such that: (1) tax base exceeds carrying amount of the asset; or (2) carrying amount exceeds tax base of the liability. [Volume 2: 5.3]
Deemed equity instruments: are financial liabilities, which are classified as equity instruments under classification exception. [Volume 2: 1.1]
Deferred tax assets: are future amounts of income taxes recoverable for: (1) deductible temporary differences; (2) carryforward of unused tax losses; and (3) carryforward of unused tax credits. [Volume 2: 5.5]
Deferred tax liabilities: are future amounts of income taxes payable, for taxable temporary differences. [Volume 2: 5.4]
Defined benefit plans: are post-employment benefit plans (except defined contribution plans), wherein the entity: (1) provides agreed post-employment benefits (to former and current employees); (2) is exposed, to both actuarial and investment risks; and (3) pays agreed post-employment benefits, although: (a) beyond its contributions to the fund; or (b) actuarial (or investment) experience will be worse than expected. [Volume 2: 4.3]
Defined contribution plans: are post-employment benefit plans, wherein the entity: (1) pays fixed contributions, into a separate entity (a fund); (2) is exposed, to no actuarial and investment risks; and (3) lacks legal (or constructive) obligation to pay further contributions, if fund assets will be insufficient, to pay all post-employment benefits (related to employees’ services, in prior and current reporting periods). [Volume 2: 4.3]
Degeneration: is the deterioration in quality (or decrease in quantity), of biological assets. [Volume 1: 7.2]
Delinquent amount: is the unpaid subscription; plus, any accrued interest; and plus, advertisement costs. [Volume 2: 6.4]
Demand deposits: are deposits in financial institutions that are withdrawable, within one working day without penalty. [Volume 1: 1.1]
Deposit liabilities: are the liability account of financial institution, which is credited (or increased) for cash deposits and credit memos; and debited (or decreased) for check withdrawals and debit memos. [Volume 1: 1.4]
Depreciable (or amortizable) amount: is the cost (minus residual value) of: (1) a significant part (or remainder) of an item of PP&E (property, plant, and equipment); or (2) an item of intangible assets with finite useful life. [Volume 2: 5.8]
Derecognition: is the removal, of a previously recognized financial liability (or part thereof), from the statement of financial position. [Volume 2: 1.6]
Derivatives: are financial instruments: (1) that require small (or no) initial net investment; (2) that changes in value when the value of a specified variable changes; and (3) that will be settled at a future date. [Volume 2: 1.2.1]
Detailed exploration: is the geochemical analysis of samples from surface signatures, and includes: Pedo-geochemical (or soil) survey; Consolidated weathered cover prospecting; Litho-geochemical (or rock) survey; Drift (or till) geochemical survey; Stream sediment survey; Hydro-geochemical survey; Vegetation survey; Geo-zoological survey; Atmo-geochemical (or vapor) survey; Electro-geochemical survey; Radiogenic isotope geochemistry; Heavy mineral survey; and Polymetallic-polynodule survey. [Volume 1: 9.16.2]
Development: is the application of research findings (or other knowledge) to a plan (or design) for the production of new (or substantially improved) materials, devices, products, processes, systems, or services, before the start of commercial production (or use). [Volume 1: 6.3.2]
Development phase (of internally developing intangible assets): is the phase, wherein an item of Intangible assets has already emerged, and expenditures herein may be recognized as an item of Intangible assets, if specified criteria are conformed to. [Volume 1: 6.3]
Development phase (of mining operations): is the construction of mining infrastructure, to establish access to mineral reserves, from approval of declaration of mining project feasibility, until registration of approved application for MPP (Mineral Processing Permit). [Volume 1: 9.16]
Dewatering: is the performance of solid-liquid separation, on the final concentrates to generate dry concentrates, through successive processes of sedimentation, filtration, and thermal drying. [Volume 1: 9.16.5]
DFTR checks: are dishonored checks, which are Dishonored for Technical Reasons (such as incorrect date, payee, amount in figures, amount in words, or signature), wherein the payee’s remedy is to return the check, for the drawer’s issuance of a replacement check. [Volume 1: 1.4.1.1]
Diminishing-balance depreciation method: is a depreciation method, whereby depreciation charges are decreasing, and repairs and maintenance are increasing, over the useful life. [Volume 1: 4.6.6.1.1]
Discontinued operation: is a disposed of (or held for sale) component of the entity, which is: a subsidiary acquired for future sale; or a separate major line of business (or geographical area of operations); and a part of single coordinated disposal plan. [Volume 1: 8.8]
Discount rate: is the return that investors require for investments, with cash flows of amounts, timing, and risk profile, equivalent to those of the assets in the CGU (or group of CGUs). [Volume 1: 4.7.4.4.5]
Disposal group: is a cluster of assets for disposal together in single transaction, that: is a group of CGUs, single CGU, or part of CGU (which becomes separate CGU); and includes liabilities to be assumed by buyer. [Volume 1: 8.1]
Dividends: are corporate profits, which the BOD (board of directors) allocated (and lawfully declared), as payable to shareholders, on demand (or at fixed date). [Volume 2: 6.16]
Dormancy charge: is a monthly fee imposed (after 5 years from latest activity) on the account balance that decreases below monthly ADB (Average Daily Balance). [Volume 1: 1.4.1.1]
Economic life: is either: (1) the period, over which one (or more) users will economically use the identified asset; or (2) the number of production (or similar) units, which one (or more) users will obtain (from the identified asset). [Volume 2: 3.13.1]
Economic useful life: is the period over which the entity will obtain future economic benefits. [Volume 1: 6.5.5.2]
Effective interest method: is the method of measuring the amortized cost of a debt instrument, and allocating the interest revenue in profit or loss, over the relevant period. [Volume 1: 2.6.3]
Effective interest rate: is the rate that exactly discounts, the estimated future cash flows through the expected life, to the gross carrying amount of the debt instrument. [Volume 1: 2.6.3]
Elimination of accumulated depreciation: is a method of adjusting: the carrying amount; to the fair value on revaluation date, of a revalued item of PP&E (property, plant, and equipment), wherein the revalued amount becomes the gross carrying amount. [Volume 2: 6.11.5.2]
Embedded system: is a computer system, with a dedicated function, within a larger electronic (or mechanical) system, such as a personal computer. [Volume 1: 6.1.2]
Employee benefits: are all forms of consideration, which the entity provides in exchange for: (1) services rendered by employees; or (2) termination of an employee’s employment. [Volume 2: 4.2]
Employees (and others rendering similar services): are individuals (including management personnel), who render personal services to the reporting entity (or another group entity), and any of these criteria is conformed to: (1) those individuals are deemed as employees, for legal (or tax) purposes; (2) those individuals work for (and are under the direction of) the reporting entity (or another group entity), identical to individuals, who are deemed as employees for legal (or tax) purposes; or (3) the services rendered are similar, to those rendered by employees currently employed with the reporting entity (or another group entity). [Volume 2: 6.19.7]
Environmental rehabilitation: is the mitigation, of the impacts of business operations (on the operating environment). [Volume 2: 2.8]
Equity instrument component: is a component (of a compound financial instrument), which is measured as the residual amount for the instrument holder’s right. [Volume 2: 6.5]
Equity instrument: is a contract, which conforms to these criteria: (1) it proves residual interest in the entity’s net assets (after deducting all liabilities); and (2) the entity (as issuer) has unconditional right (in all future circumstances, except unforeseen liquidation), to avoid delivery of cash (or another financial asset) to another entity (as holder); or (3) the issuing entity cannot avoid exchange, of fixed amount of cash (or another financial asset), for fixed number of its own equity instruments. [Volume 2: 6.1]
Equity-settled share-based payment transaction: is a share-based payment transaction, wherein the reporting entity acquires goods (or receives services), (1) as consideration for its own equity instruments (including shares, and share options); or (2) but lacks obligation, to settle the transaction with the supplier thereof (including an employee, acting as such). [Volume 2: 6.19.2]
Estimated stand-alone price: is the median of: (1) the residual stand-alone (or contractual) price; (2) the minimum stand-alone price; and (3) the maximum stand-alone price. [Volume 2: 3.5.3]
European option: is an option that is exercisable, only on expiry date. [Volume 2: 6.19.9]
Evaluation phase: is the determination of technical feasibility and commercial viability of extracting mineral resources, from preparation of scoping study, until filing of declaration of mining project feasibility. [Volume 1: 9.16]
Events after the reporting period: are favorable and unfavorable events, which occur between: (2) the end of the reporting period; and (2) the date when the financial statements are authorized for issue. [Volume 2: 2.3]
Exclusive sand and gravel permit: is sand and gravel permit, whereby sand, gravel, and other loose (or unconsolidated) materials are quarried, from public land for own use, with an area of up to 1 hectare, for a non-renewable period of 60 days (or a maximum volume of 50 cubic meters). [Volume 1: 9.15.2]
Exemplary (or corrective) damages: are damages imposed, as a warning to the public, and as a deterrent against the repetition, of socially deleterious actions. [Volume 2: 2.5]
Expected cash flow approach: is the use of probability-weighted cash flow projections, and discount rate adjusted for risks not reflected in cash flow projections, to measure the VIU. [Volume 1: 4.7.4.4.4.]
Expected cost plus margin approach: is the determination (of the estimated stand-alone price), based on the lessor’s cost; plus, the margin that a customer in the market (for the separately identified contract component) is willing to pay, for that component. [Volume 2: 3.5.3]
Expected credit losses: are the total of credit losses, weighted with their respective risks of default. [Volume 2: 3.11.1]
Expected fair value: is the amount, for which the identified asset could be exchanged, between knowledgeable willing parties, in an arms-length transaction, at the end of the lease term. [Volume 2: 3.13.1]
Expected residual value: is the amount (net of disposal costs), currently obtainable from disposal, if the identified asset were in its future age and condition (at the end of the lease term). [Volume 2: 3.3]
Expected value: is the weighted probability (of all possible outcomes), for a class of similar obligations (such as product warranties, and refund liabilities), with unequal likelihoods. [Volume 2: 2.5.1]
Experience adjustments: are effects of differences between: (1) previous actuarial assumptions; and (2) actual occurrences. [Volume 2: 4.5.7.3.1]
Expired shares: are shares that were not issued, because share options have been unexercised (within the option period). [Volume 2: 6.19.7.2]
Exploration permit: is for the searching (or prospecting) for mineral resources, to determine their existence, extent, quality, quantity, and feasibility for mining; and has a term of 2 years from issuance date, renewable for like periods, up to a total of 4 years (for non-metallic mineral exploration), or up to a total of 6 years (for metallic mineral exploration). [Volume 1: 9.15]
Exploration phase: is the search for mineral resources, from issuance of Exploration Permit, until submission of final exploration report. [Volume 1: 9.16]
Factoring with recourse: is a mode of financing, whereby specific trade receivables are sold, with obligation to repurchase uncollected portion. [Volume 1: 2.8]
Factoring without recourse: is a mode of financing, whereby specific trade receivables are sold, without obligation to repurchase uncollected portion. [Volume 1: 2.8]
Fair value (for share-based payments): is the amount, at which: an asset can be exchanged; a liability can be settled; or an equity instrument can be granted; between knowledgeable willing parties, in an arm’s length transaction. [Volume 2: 6.19.7]
Fair value: is the price payable to transfer an asset (or payable to settle a financial liability), in an orderly transaction between market participants, on measurement date. [Volume 2: 1.4]
Feasibility study: is the comprehensive technical and economic study, of the selected development option for a mineral project, that includes appropriately detailed assessments of applicable Modifying Factors, and other relevant operational factors and detailed financial analysis, necessary to demonstrate reasonably justified (or economically minable) extraction; that may reasonably serve as the basis for a final decision by a proponent (or financial institution) to proceed with (or finance) the development of the project; and that has a higher confidence level than a Pre-Feasibility Study. [Volume 1: 9.16.3]
Finance lease: is a lease, with transfer of substantially all risks and rewards, incidental to ownership of the identified asset. [Volume 2: 3.13]
Finance sublease: is a sublease, which transfers substantially all risks and rewards (incidental to control of the right-of-use asset, in the head lease). [Volume 2: 3.27]
Financial asset: is an asset that: is cash; is an equity instrument of another entity; is a contractual right to receive cash (or another financial asset) from another entity, or to exchange financial assets (or financial liabilities) with another entity, under potentially favorable conditions; or is a contract that can be settled in the entity’s own equity instruments, and is a non-derivative for which a variable number of the entity’s own equity instruments is receivable, or a derivative that can be settled other than by exchange of a fixed amount of cash (or another financial asset) for a fixed number of the entity’s own equity instruments. [Volume 1: 2.1]
Financial assets held for trading: are financial assets that are: acquired principally for sale in the near term; initially part of portfolio with recent actual pattern of short-term profit-taking; or derivatives, except financial guarantee contracts and designated effective hedging instruments. [Volume 1: 2.2.1]
Financial guarantee: is a contractual right of the lender to receive cash from the guarantor, and a corresponding contractual obligation of the guarantor to pay cash to the lender, if the borrower defaults. [Volume 1: 2.1]
Financial instrument: is any contract, which results to one entity’s financial asset, and another entity’s financial liability (or equity instrument). [Volume 2: 6.1.1]
Financial liabilities held for trading: are financial liabilities, which are: (1) incurred principally for repurchase, in the near term; (2) initially part of portfolio, with recent actual pattern of short-term profit-taking; (3) derivatives, except financial guarantee contracts and designated effective hedging instruments; or (4) obligations of a short seller, to deliver borrowed financial assets. [Volume 2: 1.2.1]
Financial liabilities measured at amortized cost: are financial liabilities, which are measured at the upon initial recognition; minus, any principal repayments; and plus (or minus), the cumulative amortization (under the effective interest method) of any difference: between the initial amortized cost; and the maturity amount. [Volume 2: 1.2]
Financial liabilities measured at FVPL (fair value through profit or loss): are financial liabilities, which conform to any of these criteria: (1) held for trading; or (2) initially (or subsequently) designated as measured at FVPL. [Volume 2: 1.2]
Financial liability component: is a component (of a compound financial instrument), which is measured as the present value of the issuing entity’s obligation. [Volume 2: 6.5]
Financial liability: is any liability, that is: (1) a contractual obligation: (a) to deliver cash (or another financial asset) to another entity; or (b) To exchange financial assets (or liabilities) with another entity (under conditions that are potentially unfavorable to the reporting entity); or (2) a contract that can be settled, in the entity’s own equity instruments, and is: (a) a non-derivative, wherein the entity can be obliged, to deliver variable number of its own equity instruments; or (b) a derivative that can be settled, except by exchange of fixed amount of cash (or another financial asset) for fixed number of the entity’s own equity instruments. [Volume 2: 1.1]
Financial or technical assistance agreement: is a contract for large-scale mining operations, except the quarry operations in a mineral agreement. Provided that the profitable operating life of the mining project is more than 10 years, this contract has a term of 25 years from execution date, renewable for another 25 years. [Volume 1: 9.15]
Finished goods: are inventories, held for sale in the ordinary course of business. [Volume 1: 3.1]
Firm purchase commitment: is a binding agreement with unrelated party that: specifies all significant terms of the transaction; and includes disincentive for non-performance, which is sufficiently large to cause the performance become highly probable. [Volume 1: 8.2.5]
Fixed production overheads: are indirect production costs that: remain relatively constant, regardless of production volume; and are allocated to each production unit, based on the higher of normal capacity or actual production. [Volume 1: 3.2.2]
Fixed-for-fixed exchange: is an exchange, of fixed number of the issuing entity’s own equity instruments, in exchange for fixed amount of cash (or another financial asset). [Volume 2: 6.1.4]
Floored interest rate: is a variable market interest, with minimum rate. [Volume 1: 2.2.3]
Forfeited shares: are shares that were not issued, because: (1) any non-vesting condition has been unfulfilled (during the specified period); or (2) any market performance target has been unachieved (during the vesting period). [Volume 2: 6.19.7.2]
Fortuitous events: are unforeseen events, or though foreseen, were inevitable. [Volume 1: 3.3]
Forward contract: is a contract, whereby one party is obliged to buy (and another party is obliged to sell), an underlying asset (for a fixed price) at a future date. [Volume 2: 1.3]
Forward purchase contract: is a forward contract, wherein: (1) the issuing entity has obligation to buy fixed number of its own equity instruments (from the counterparty), in exchange for fixed amount of cash, at fixed future date; and (2) the counterparty has obligation to sell fixed number of the issuing entity’s own equity instruments (to that issuing entity), in exchange for fixed amount of cash, at fixed future date. [Volume 2: 6.7]
Forward sale contract: is a forward contract, wherein: (1) the issuing entity has obligation to sell fixed number of its own equity instruments (to the counterparty), in exchange for fixed amount of cash, at fixed future date; and (2) the counterparty has obligation to buy fixed number of the issuing entity’s own equity instruments (from that issuing entity), in exchange for fixed amount of cash, at fixed future date. [Volume 2: 6.7]
Founder’s shares: are shares, with certain rights and privileges (not enjoyed by other shareholders). [Volume 2: 6.2]
Full recourse loan: is a loan, whereby the lender has contractual right to the borrower’s equity, if the collateral is insufficient, to settle the uncollected principal and interest. [Volume 1: 2.2.3]
Future taxable amounts: are amounts, which are non-taxable upon origination (but taxable upon reversal). [Volume 2: 5.3.3]
GBM (Geometric Brownian Motion): is a mathematical model, for describing random movement of share prices (over a specified period). [Volume 2: 6.19.9]
Gemstone gathering permit: is a permit for quarry operations of loose stones, which are useful as gemstones, for a term of 1 year, renewable for like periods. [Volume 1: 9.15]
Government assistance: is government action to provide economic benefit, which is specific to the qualifying entity (or range of qualifying entities). [Volume 1: 9.1.1]
Government grants: are government assistance to transfer resources, in return for past (or future) compliance with certain conditions, on the operating activities, regions, or sectors of the entity. [Volume 1: 9.1]
Government gratuitous permit: is gratuitous permit, whereby the Government quarries quarry resources, sand, gravel, and other loose (or unconsolidated) materials, from public (or private) land for public use, with an area of up to 2 hectares, for a term of 1 year. [Volume 1: 9.15.3]
Grant date: is either of these dates (depending on whether the share-based payment arrangement is subject to approval process): (1) without approval process = when: (a) the reporting entity (or another group entity), and the counterparty (including an employee, acting as such), explicitly (or implicitly ) agree to (and have shared understanding of) all terms and conditions thereof; and (b) the reporting entity (or another group entity) confers on the counterparty (including an employee, acting as such), the right to cash, other assets, or equity instruments (including shares, and share options), upon fulfillment of any specified vesting conditions; or (2) with approval process = when the share-based payment arrangement is approved. [Volume 2: 6.19.5]
Grants of mandatorily redeemable equity instruments: are cash-settled share-based payment transactions, wherein employees (acting as such) are entitled to cash payment (as part of their remuneration package), by granting them right to equity instruments (including shares, and share options), which are redeemable for fixed (or determinable) future price, at fixed (or determinable) future date (or at the employees’ option). [Volume 2: 6.19.8]
Grants of phantom equity instruments: are cash-settled share-based payment transactions, wherein employees (acting as such) are entitled to cash payment (as part of their remuneration package), equal to the gain that would have been realized, from the sale of a notional number of equity instruments (including shares, and share options), on settlement date. [Volume 2: 6.19.8]
Grants of share appreciation rights: are cash-settled share-based payment transactions, wherein employees (acting as such) are entitled to cash payment (as part of their remuneration package), based on the increase in share price of the reporting entity (or another group entity), from a specified level over a specified period. [Volume 2: 6.19.8]
Grants related to assets: are government grants, whose: primary condition is to purchase, construct, or otherwise acquire long-term assets; and subsidiary conditions may be the type (or location) of the assets, or the period to acquire (or hold) those assets. [Volume 1: 9.1]
Grants related to income: are government grants, whose condition is other than those related to assets. [Volume 1: 9.1]
Gratuitous guano permit: is guano permit, whereby loose (or unconsolidated) guano, and other organic fertilizer deposits are quarried, for personal (or government) use, up to 2,000 kilograms. [Volume 1: 9.15.3]
Gratuitous permit: is a permit for medium-scale quarry operations of quarry resources, sand, gravel, and other loose (or unconsolidated) materials. [Volume 1: 9.15]
Gross carrying amount: is the amortized cost of the debt investment, before adjusting for any loss allowance. [Volume 1: 2.6.3]
Gross investment in the lease: is the sum of: (1) lease payments receivable (by the lessor under a finance lease); and (2) any unguaranteed residual value, accruing to the lessor. [Volume 2: 3.14]
Gross physical settlement: is a settlement alternative (for the issuing entity’s equity derivatives), wherein the issuing entity will receive cash (or its own equity instruments) from, in exchange for delivery of its own equity instruments (or payment of cash) to, the instrument holder. [Volume 2: 6.7.1]
Gross restatement to observable market data: is a method of adjusting: the carrying amount; to the fair value on revaluation date, of a revalued item of PP&E (property, plant, and equipment), wherein the gross carrying amount is restated, and the accumulated depreciation becomes the balancing amount. [Volume 2: 6.11.5.2]
Group administration plans: are an aggregation (of single employer plans): (1) that are combined: (a) to pool (for investment purposes) assets (of participating employers); and (b) to decrease costs (of investment management and administration); and (2) wherein: (a) employers’ claims are segregated, for sole benefit of their own employees; and (b) participating employers are exposed, to no actuarial risks (related to other employers’ former and current employees). [Volume 2: 4.3.2.1]
Group depreciation method: is a depreciation method, for a cluster of significant parts (or items) with identical useful lives and consumption patterns. [Volume 1: 4.6.6.1.1.1]
Group entity: is: (1) the reporting entity’s parent; (2) the reporting entity’s subsidiary; or (3) any subsidiary of the reporting entity’s parent. [Volume 2: 6.19]
Growth: is the improvement in quality (or increase in quantity), of biological assets. [Volume 1: 7.2]
Guano permit: is a permit for quarry operations of loose (or unconsolidated) guano, and other organic fertilizer deposits, from caves (or confined sites) of up to 5 hectares. [Volume 1: 9.15]
Highest bidder: is the bidder, who offers to pay the total amount due, for the smallest number of delinquent shares (or fraction of a delinquent share). [Volume 2: 6.4]
Hold-out deposit: is the source from which periodic loan amortization will be paid, if the entity defaults in payment thereof; and inaccessible, until the entity fully pays the loan. [Volume 1: 1.2]
IFRS Accounting Standards: are accounting standards, which the IASB (International Accounting Standards Board) issued, the FSRSC (Financial and Sustainability Reporting Standards Council) adopts as PFRS (Philippine Financial Reporting Standards), and comprise: (1) International Financial Reporting Standards; (2) International Accounting Standards; (3) IFRIC Interpretations; and (4) SIC Interpretations. [Volume 2: 6.10]
Immature bearer biological assets: are biological assets, which cannot yet sustain regular harvests. [Volume 1: 7.5.1.1]
Immature consumable biological assets: are biological assets, which have not yet attained harvestable specifications. [Volume 1: 7.5.1.1]
Impairment gain (or loss): is the positive (or negative) excess: of the recoverable amount, over the carrying amount (of the asset). [Volume 2: 3.11.1]
Implementation guidance: is an accompanying guidance, which is a non-integral part of (unless otherwise provided by) IFRS Accounting Standards, and excludes requirements for financial statements. [Volume 2: 6.11]
Implied refund period: is the minimum 90-day period (beyond the standard refund period), within which customers (or their representatives) validly expect the entity (from established pattern of past practice, published policies, or sufficiently specific statement), to fully (or partially) refund the sale price of the inferior services. [Volume 2: 2.8]
Implied return period: is the 60-day to 1-year period (beyond the standard return period), within which customers (or their representatives) validly expect the entity (from established pattern of past practice, published policies, or sufficiently specific statement): to fully (or partially) refund the sale price of the inferior goods; to issue credit memo, applicable against amounts owed (or will be owed) to the entity; or to deliver another product in exchange. [Volume 2: 2.8]
Implied warranty period: is the 60-day to 1-year period (beyond the standard warranty period) within which customers (or their representatives) validly expect the entity (from established pattern of past practice, published policies, or sufficiently specific statement), to repair (or replace) the products, with defects existing at point of sale. [Volume 2: 2.14]
Impracticable restatement of prior period: is a situation, wherein (despite reasonable effort) the entity cannot apply retrospective restatement to correct an error (or retrospective application of change in accounting policy), such that any of these criteria is conformed to: (1) effects of the retrospective restatement (or application) are indeterminable; (2) retrospective restatement (or application) requires assumptions about management’s intent (in that period); or (3) retrospective restatement (or application) requires significant estimates, and objective distinction is impossible , between: (a) information that proves existing circumstances , when those estimates would have been recognized, measured, or disclosed (in that period); and (b) information that would have been available, when financial statements (for that period) were authorized for issue. [Volume 2: 6.12]
Incidental scrap sale: is the sale as scrap, of production output that is an excess of those for internal consumption. [Volume 1: 4.7.4.4.1]
Income taxes: are domestic and foreign taxes, which are based on taxable profit, including withholding taxes payable by subsidiary, associate, or joint arrangement on distributions to the reporting entity, but excluding these levies: (1) taxes, fees, and charges under the LGC (Local Government Code) ; and (1) non-income taxes under the NIRC (National Internal Revenue Code). [Volume 2: 5.1]
Increase in authorized capital stock: is the increase in number of authorized shares, without change in par (or issued) value per share. [Volume 2: 6.13]
Increase in Revaluation surplus: is the increase, from the higher of, the original carrying amount or the revalued amount, to the fair value on revaluation date, which is presented as non-reclassifiable gain in other comprehensive income, and which is reclassified to Retained earnings, over the remaining useful life of the asset, or when the asset is derecognized. [Volume 1: 4.6.7]
Incremental costs: are costs that would have not been incurred, had the entity not issued, acquired, or disposed of the financial instrument. [Volume 1: 2.5.1]
Incurred fees: are the net fees paid, by (or on behalf of) the entity, to (or on behalf of) the creditor (or third parties). [Volume 2: 1.6.3]
Indicated mineral resources: are part of mineral resources, for which geological evidence and sampling assume geological and grade (or quality) continuity between points of observation, with geological confidence lower than that of measured mineral resources, and may be converted to probable mineral reserves. [Volume 1: 9.13]
Industrial design: is any 3-dimensional form (or composition of shapes, lines, colors, or combination thereof), which is new, has aesthetic and ornamental effect when taken as a whole; and has special appearance and pattern for industrial product (or handicraft). [Volume 1: 6.8.1]
Industrial sand and gravel permit: is sand and gravel permit, whereby sand, gravel, and other loose (or unconsolidated) materials are quarried, with mechanical processing, from an area of up to 20 hectares, for a term of 5 years from issuance date, renewable for like periods, up to a total of 25 years. [Volume 1: 9.15.2]
Inferred mineral resources: are part of mineral resources, for which geological evidence and sampling imply geological and grade (or quality) continuity between points of observation, with geological confidence lower than that of indicated mineral resources, and cannot be converted to mineral reserves. [Volume 1: 9.13]
Initial direct costs: are incremental costs to obtain the lease (except those incurred in finance lease, by manufacturer or dealer lessor), which would have been avoided, had the lease not been obtained. [Volume 2: 3.8]
Initial markup: is the original increase above the cost. [Volume 1: 3.2.7.1]
Input depreciation method: is a depreciation method, whereby depreciable amount represents the cost, of a number of service hours. [Volume 1: 4.6.6.1.2]
In-substance defeasance: is an arrangement, whereby the entity pays a third party, who invests the funds in low-risk assets, which the entity has no (or limited) access, and which are applied to discharge the interest and principal payments (to the creditor). [Volume 2: 1.6.2]
In-substance fixed payments: are payments, which may contain variability in form, but are fixed in substance, because the contract’s terms and conditions ensure, that the payment of a fixed amount is unavoidable. [Volume 2: 3.3]
Intangible assets: are non-monetary assets, which: can produce future economic benefits, in at least one circumstance, beyond those available to others; the entity can: direct the use of the asset and obtain potential economic benefits, and prevent others to direct such use, and obtain such benefits; have no physical existence, but linked to specific object; are separable, or emanating from obligatory right; and are neither held for sale to customers, nor classified as (or included in disposal group) held for sale. [Volume 1: 6.1]
Interest: is the compensation of the current holder, for the time value of money, credit risk, other basic lending risks and costs, and profit margin, in a basic lending arrangement. [Volume 1: 2.2]
Interest rate implicit in the lease: is the rate of interest, which equalizes these amounts: (1) present value of: (a) lease payments; and (b) unguaranteed residual value; and (2) sum of: (a) fair value of the identified asset; and (b) any initial direct costs of the lessor. [Volume 2: 3.4]
In-the-money call option: is a call option, wherein the market price exceeds the exercise price. [Volume 2: 6.7.3.1]
In-the-money put option: is a put option, wherein the exercise price exceeds the market price. [Volume 2: 6.7.4.1]
Intrinsic value element (of call option’s fair value): is any excess of market price, over exercise price. [Volume 2: 6.7.3.1]
Intrinsic value element (of forward contract’s fair value): is any excess of market price, over forward price. [Volume 2: 6.7.2.1]
Intrinsic value element (of put option’s fair value): is any excess of exercise price, over market price. [Volume 2: 6.7.4.1]
Intrinsic value: is the difference, between: (1) fair value of the shares, to which the counterparty (including an employee, acting as such) has conditional (or unconditional) right to subscribe (or receive), from the reporting entity (or another group entity); and (2) any exercise (or redemption) price, which the counterparty (including an employee, acting as such) is (or will be) required to pay for those shares. [Volume 2: 6.19.9]
Inventories: are assets, comprising finished goods, work in progress, raw materials, and consumable stores. [Volume 1: 3.1]
Investment property: is property that: (1) is Land, Building, part thereof, or both; (2) is held by the owner (or the lessee as right-of-use asset); (3) generates cash flows (largely independent, from those of other assets); and (4) is (or will be) held for operating lease, long-term capital appreciation, or both. [Volume 1: 5.1]
Investment risk: is the risk, that invested assets will be insufficient, to pay expected post-employment benefits. [Volume 2: 4.3]
Joint arrangement: is an arrangement with two (or more) joint venturers, which are parties with joint control of a joint venture. [Volume 1: 2.9.1]
Joint control: is the contractually agreed sharing of control, when decisions on relevant activities of the joint venture, require unanimous consent of the joint venturers. [Volume 1: 2.9.1]
Joint provision: is a provision, whereby the entity is obliged (to settle its proportional share, in the provision), and any financial incapacity (of another entity) will not increase its pre-tax best estimate. [Volume 2: 2.5.3]
Joint Venture Agreement: is mineral agreement, whereby the Government and the Contractor organize a joint venture company, with equity shares for both parties. [Volume 1: 9.15.1]
Joint venture: is a joint arrangement, whereby joint venturers have rights to the net assets thereof. [Volume 1: 2.9.1]
Joint venturer: is a party with joint control of a joint venture. [Volume 1: 2.9.1]
Key management personnel: are persons (such as the chief executive officer, and the board of directors) with authority and responsibility, for planning, directing, and controlling the entity’s activities. [Volume 2: 1.2.2]
Land easements (or rights of way): are rights to use, access, or cross another entity’s land, for specified purposes. [Volume 2: 3.1.1]
Lease commencement date: is the date, when the lessor grants access, possession, or control, of the asset to the lessee. [Volume 2: 3.1.1]
Lease incentives: are lease-related payments by the lessor to the lessee (such as upfront cash payments); reimbursements by the lessor of costs for the lessee (such as moving expenses); and assumptions by the lessor of costs for the lessee (such as lessee’s pre-existing lease with a third party). [Volume 2: 3.3]
Lease inception date: is the earlier of: (1) date of lease agreement; or (2) date of commitment (by the parties) to the principal terms and conditions (of the lease). [Volume 2: 3.1]
Lease: is a contract (or part thereof), which conveys (in exchange for consideration) the right to control the use (of the identified asset), for a period of use. [Volume 2: 3.1]
Lease modification: is a change in the scope of (or the consideration for) the lease, which was neither part of, nor contemplated in, the original terms and conditions thereof, such as adding (or terminating) the right to control the use of one (or more) identified assets; and extending (or shortening) the lease term. [Volume 2: 3.11.2.1]
Lease payments: are payments by the lessee, to the lessor (or to a third party, on behalf of the lessor), for the right (to control the use, of the identified asset), over the lease term. [Volume 2: 3.3]
Lease term: is the sum of: (1) non-cancellable lease period; (2) any rent-free periods; (3) optional lease extension periods (if the lessee is reasonably certain, to exercise the option); and (4) optional lease termination period (if the lessee is reasonably certain, to forgo the option). [Volume 2: 3.2]
Legal (or contractual) useful life: is the period over which the entity can control access to future economic benefits. [Volume 1: 6.5.5.2]
Legal obligation: is an obligation, resulting from contract, legislation, or other operation of law. [Volume 2: 2.2.2]
Lessee: is the entity, which obtains (in exchange for consideration) the right (to control the use, of the identified asset), for a period of use. [Volume 2: 3.2.1]
Lessee’s incremental borrowing rate: is the rate of interest, which the lessee will pay, to borrow over a similar term, and with similar security, the funds to obtain an asset, with value similar to the right-of-use asset, in a similar economic environment. [Volume 2: 3.4]
Lessor: is the entity, which provides (in exchange for consideration) the right (to control the use, of the identified asset), for a period of use. [Volume 2: 3.2.1]
Level 1 inputs: are quoted prices for identical assets, in active markets accessible to the entity, on measurement date. [Volume 1: 4.7.4.3]
Level 2 inputs: are non-Level 1 inputs observable for the asset. [Volume 1: 4.7.4.3]
Level 3 inputs: are unobservable inputs, based on reasonably available assumptions of market participants, such as industry practice. [Volume 1: 4.7.4.3]
Levy: is an outflow of economic benefits, which: (1) is imposed by government legislation; (2) excludes income taxes, and fines (or penalties) for breaches of legislation; and (3) is recognized as liability, when (or as) the activity (identified by legislation) occurs. [Volume 2: 2.8]
Liability: is an obligation, which: (1) is a present duty (or responsibility) of the reporting entity; (2) has the present potential, to require future transfer of an economic resource; and (3) presently exists, as a result of past events. [Volume 2: 2.1]
Liability-linked investment properties: are investment properties, whose returns (or fair value) secure specific liabilities. [Volume 2: 3.11]
Lifetime ECLs (expected credit losses): are ECLs from possible default events, over the expected life of the debt instrument. [Volume 1: 2.7.2]
Liquidated damages: are damages agreed upon by the parties to a contract, to be paid in case of breach thereof. [Volume 2: 2.5]
Longevity swap: is the transfer (from a pension scheme, to an external party) of the risk, that members live longer (or shorter) than expected. [Volume 2: 4.7.3]
Maintenance charge: is a fee imposed (by the financial institution) whenever the account balance decreases below monthly ADB (Average Daily Balance), for 2 or more consecutive months. [Volume 1: 1.4.1.1]
Management personnel: are persons (including non-executive directors), with authority and responsibility, for planning, directing, and controlling the activities of the reporting entity (or another group entity). [Volume 2: 6.19.7]
Mark: is a visible sign that includes stamped (or marked) container of goods, which distinguishes the goods (trademark) or the services (service mark) of an entity. [Volume 1: 6.9.1]
Markdown cancellation: is the decrease in markdown that does not raise the retail price above the original retail. [Volume 1: 3.2.7.1]
Markdown: is the decrease in retail price below the original retail. [Volume 1: 3.2.7.1]
Market condition: is a performance condition, whose performance target is based on the fair value of equity instruments (including shares, and share options) of the reporting entity (or another group entity), such as: (1) attainment of specified share price (or specified amount of intrinsic value of share option); and (2) achievement of specified target, which is based on the fair value of equity instruments of the reporting entity (or another group entity), relative to an index of market prices of equity instruments of non-group entities. [Volume 2: 6.19.3]
Marketplace: is the environment, wherein the financial asset is actually (or customarily) exchanged. [Volume 1: 2.4]
Markup cancellation: is the decrease in markup that does not reduce the retail price below the original retail. [Volume 1: 3.2.7.1]
Material errors: are errors, which influence primary users’ economic decisions (based on financial statements). [Volume 2: 6.10]
Mature bearer biological assets: are biological assets, which can already sustain regular harvests. [Volume 1: 7.5.1.1]
Mature consumable biological assets: are biological assets, which have already attained harvestable specifications. [Volume 1: 7.5.1.1]
Measured mineral resources: are part of mineral resources, for which geological evidence and sampling confirm geological and grade (or quality) continuity between points of observation, with geological confidence higher than that of indicated mineral resources, and may be converted to probable (or proved) mineral reserves. [Volume 1: 9.13]
Midpoint of range: is the pre-tax best estimate of provisions (except onerous contracts), with continuous range of possible outcomes (with equal likelihoods). [Volume 2: 2.5.1]
Mineral agreement: is a contract for medium-scale mining operations, and large-scale mining operations of cement raw materials and construction aggregates. Provided that the operating years without tax holiday exceed those with tax holiday, this contract has a term of 25 years from execution date, renewable for another 25 years. [Volume 1: 9.15]
Mineral Production Sharing Agreement: is mineral agreement, whereby the Government grants to the Contractor the exclusive right to conduct mining operations within the contract area, and shares in the production, as owner of the minerals therein. [Volume 1: 9.15.1]
Mineral reserves: are the economically minable part of indicated (or measured) mineral resources, that are defined by application of modifying factors. [Volume 1: 9.14]
Mineral resources: are concentrations (or occurrences) in (or on) the Earth’s crust, of solid material with economic interest, for which quantity and grade (or quality) are estimated, based on geological evidence and sampling. [Volume 1: 9.13]
Minimum funding requirements: are any requirements, to fund a post-employment (or other long-term) defined benefit plan. [Volume 2: 4.5.5.2.2]
Mining environment rehabilitation: is the mitigation of the impacts of mining operations on mining environment, usually through planting of vegetation for agriculture, fishery, and drinking purposes. [Volume 1: 9.16.6]
Mining plant decommissioning: is the dismantlement and removal of the mining plant from mining site. [Volume 1: 9.16.6]
Mining site restoration: is the bringing back of the mining site, to acceptable level of self-sustained ecosystem. [Volume 1: 9.16.6]
Modifying factors: are the considerations used to convert mineral resources to mineral reserves, and include mining, processing, metallurgical, infrastructural, economic, marketing, legal, environmental, social, and governmental factors. [Volume 1: 9.14]
Monte Carlo Simulation: is a simulation option pricing model, which: (1) is applied when the call (or put) option has sophisticated structure, and complex market conditions; (2) employs GBM (Geometric Brownian Motion); (3) simulates a large number of potential share price scenarios (over a specified period); (4) integrates varied assumptions, about volatility, exercise behavior, and other market conditions; and (5) results to a refined estimate of the call (or put) option’s fair value. [Volume 2: 6.19.9]
Moral damages: are damages to alleviate in some way, the physical suffering, mental anguish, fright, serious anxiety, besmirched reputation, wounded feelings, moral shock, social humiliation, and similar injury, unjustly caused a person. [Volume 2: 2.5]
Most likely amount: is the weighted probability (of significantly possible outcomes), for single obligation (with significant and insignificant likelihoods). [Volume 2: 2.5.1]
Multi-employer plans: are post-employment benefit plans (except state plans), which: (1) pool assets contributed by participating entities (not under common control); and (2) use pooled assets, to provide post-employment benefits (based on contribution and benefit levels), regardless of identity of the entity (that employs the employees). [Volume 2: 4.3.2]
Multiple settlement alternatives: are settlement alternatives (for the issuing entity’s equity derivatives), wherein the issuing entity can choose net cash settlement, net share settlement, or gross physical settlement alternative. [Volume 2: 6.7.1]
Net cash settlement: is a settlement alternative (for the issuing entity’s equity derivatives), wherein the issuing entity will receive (or pay) cash, for the difference between: (1) fixed amount of cash payable (or fair value of its own equity instruments deliverable) to the instrument holder; and (2) fair value of its own equity instruments (or fixed amount of cash) receivable from the instrument holder. [Volume 2: 6.7.1]
Net defined benefit liability (or asset): is the defined benefit deficit (or surplus), adjusted for any effect of limiting a net defined benefit asset (to the asset ceiling). [Volume 2: 4.5.5]
Net interest on the net defined benefit liability (or asset): is: (1) the change during the reporting period, in the net defined benefit liability (or asset), resulting from passage of time; and (2) determined by multiplying the net defined benefit liability (or asset), by the discount rate. [Volume 2: 4.5.7.2]
Net investment in the lease: is the gross investment in the lease, discounted at the interest rate implicit in the lease. [Volume 2: 3.14]
Net markdown: is the markdown, minus the markdown cancellation. [Volume 1: 3.2.7.1]
Net markup: is the additional markup, minus the markup cancellation. [Volume 1: 3.2.7.1]
Net share settlement: is a settlement alternative (for the issuing entity’s equity derivatives), wherein the issuing entity will receive (or deliver) its own equity instruments, rather than receive (or pay) cash, for the difference (in net cash settlement). [Volume 2: 6.7.1]
Nominal damages: are damages recoverable, where a legal right is technically violated, and must be vindicated against an invasion, which has produced no actual present loss of any kind; or where there has been a breach of contract, and no substantial injury (or actual damages) whatsoever have been (or can be) shown. [Volume 2: 2.5]
Non-accumulating paid absences: are short-term paid absences, wherein any unused portion (of entitlement to paid absences, in current reporting period) cannot be carried forward and used, in future reporting periods. [Volume 2: 4.2.2.1]
Non-adjusting events after the reporting period: are those which prove conditions, which existed after the end of the reporting period. [Volume 2: 2.4]
Non-compete agreement: is an agreement, wherein the shares (or an equivalent amount of cash) must be returned to the reporting entity (or another group entity), if the employee (acting as such) commences work for a competitor (within a specified period), after retirement (or employment termination). [Volume 2: 6.19.4]
Noncumulative and nonparticipating preferred shares: are preferred shares entitled, only to current annual dividends. [Volume 2: 6.18.1]
Noncumulative but fully participating preferred shares: are preferred shares entitled to: current annual dividends; and prorated participating dividends. [Volume 2: 6.18.1]
Noncumulative but partially participating preferred shares: are preferred shares, entitled to: current annual dividends; and limited participating dividends. [Volume 2: 6.18.1]
Noncurrent asset: is an asset, which is not classified as current. [Volume 1: 8.2]
Nondiscretionary contributions: are contributions, which result from: (1) the plan’s formal terms; or (2) a constructive obligation. [Volume 2: 4.5.3.2]
Non-lease components: are parts of the contract, such as agreements to purchase (or sell) inventories (or services), which represent a transfer of inventories (or services) to the lessee (rather than a conveyance of right, to control the use of identified assets). [Volume 2: 3.5.1]
Non-market condition: is a performance condition, whose performance target is based on activities (or operations) of the reporting entity (or another group entity), as a whole (or part thereof, such as a division, or an employee). [Volume 2: 6.19.3]
Non-onerous executory contracts: are non-onerous contracts, whose obligations are not yet performed (or are partially performed, to equal extent) by the parties. [Volume 2: 2.1]
Non-production overheads: are administrative overheads, not allocatable to production function. [Volume 1: 3.2.3]
Nonstock corporation: is a corporation, (1) which is created under the RCC (Revised Corporation Code); (1) without capital stock; (2) composed of members; and (3) unauthorized to distribute dividends. [Volume 2: 6.2]
Non-vesting condition: is a condition, wherein: (1) service condition is not required; (2) performance target is wholly (or partly) based on activities, operations, or equity instruments (including shares, and share options) of non-group entities; (3) fulfillment of the condition is optional to the reporting entity, another group entity, or the counterparty (including an employee, acting as such); or (4) achievement period (of the performance target) extends, beyond the service period. [Volume 2: 6.19.4]
Non-voting shares: are shares, with incomplete voting rights. [Volume 2: 6.2]
No-par value shares: are shares: (1) without par value; (2) issued for PHP 5.00 (or more); (3) deemed fully paid and nonassessable, upon issuance; (4) and whose entire consideration is deemed as capital (and unavailable for distribution as dividends). [Volume 2: 6.2]
Normal capacity: is the expected average production, over a number of periods (or seasons), after allowance for capacity loss, from planned maintenance. [Volume 1: 3.2.2]
NOW accounts: are demand deposits, which are withdrawable through NOW (Negotiable Order of Withdrawal), and are interest-bearing. [Volume 1: 1.1]
NRV (Net realizable value): is the estimated sale price, minus estimated costs to complete and sell the inventories, in the ordinary course of business. [Volume 1: 3.2]
Number of shares that are deemed vested: is the number of shares that are subject, only to: (1) non-vesting conditions = wherein shares (or share options) are deemed vested on grant date (although those conditions will be unfulfilled); or (2) market conditions = wherein shares (or share options) are deemed vested at service expiry (although market performance targets will be unachieved). [Volume 2: 6.19.7.2]
Number of shares that have vested: is the number of shares that are subject to non-market conditions, wherein shares (or share options) have vested at service expiry (because non-market performance targets have been achieved). [Volume 2: 6.19.7.2]
Number of shares that will vest: is the number of shares that are subject to non-market conditions, wherein shares (or share options) will vest at service expiry (if non-market performance targets will have been achieved). [Volume 2: 6.19.7.2]
Obligating event: is an event, which results to: (1) future expenditure, which cannot be avoided; and (2) no realistic alternative, except to settle the obligation. [Volume 2: 2.2.1]
Observable stand-alone price: is the price, at which an entity will separately sell the lease (or non-lease) component, in similar circumstances, to similar customers. [Volume 2: 3.5.3]
Onerous contract: is a contract, wherein the unavoidable costs (to fulfill obligations therein) exceed the economic benefits (receivable therefrom). [Volume 2: 2.8]
Operating lease: is a lease, without transfer of substantially all risks and rewards, incidental to ownership of the identified asset. [Volume 2: 3.13]
Operating segment: is a component of the entity that: earns revenues, and incurs expenses, from its business activities (including transactions with other components of the entity); the entity’s chief decision maker regularly reviews for assessing performance and allocating resources; and has discrete financial information. [Volume 1: 4.7.5.2]
Operating sublease: is a sublease, wherein any of these criteria is conformed to: (1) head lease is short-term lease, and the intermediate lessor (as original lessee in the head lease) elected the recognition exemption for short-term leases; or (2) sublease does not transfer substantially all risks and rewards (incidental to control of the right-of-use asset, in the head lease). [Volume 2: 3.27]
Option contract: is a contract, whereby the option holder has the right (but not the obligation), to buy an asset from (or sell an asset to) the option writer (for a fixed price) at a future date (or during a period of time). [Volume 2: 1.3]
Ordinary shares: are shares, issued with (or without) par value, and without any preference. [Volume 2: 6.2]
Original carrying amount: is the carrying amount, had no revaluation or impairment adjustments been recognized, and which serves as the cutoff point, from which changes in revaluation surplus, and revaluation gains (or losses), are determined. [Volume 1: 4.6.7]
Original retail: is the cost, plus the initial markup, and which serves as the cutoff point, from which net markups and net markdowns are determined. [Volume 1: 3.2.7.1]
Other comprehensive income: are income and expense items (including reclassification adjustments), which are not recognized in profit or loss, as other IFRS Accounting Standards require (or allow). [Volume 2: 6.15]
Other long-term employee benefits: are employee benefits, except short-term employee benefits, termination benefits, and post-employment benefits. [Volume 2: 4.2]
Out-of-the-money call option: is a call option, wherein the exercise price exceeds the market price. [Volume 2: 6.7.3.1]
Out-of-the-money put option: is a put option, wherein the market price exceeds the exercise price. [Volume 2: 6.7.4.1]
Output depreciation method: is a depreciation method, whereby depreciable amount represents the cost, of a number of production units. [Volume 1: 4.6.6.1.2]
Outstanding capital stock: is the total shares of stock issued, under binding subscription contracts to subscribers (or shareholders), except treasury shares. [Volume 2: 6.8]
Outstanding checks: are check withdrawals already credited to demand deposits (in the depositor entity’s books), but not yet debited to deposit liabilities (in the financial institution’s books). [Volume 1: 1.4.1.2]
Outstanding deposits: are cash deposits already debited to demand deposits (in the depositor entity’s books), but not yet credited to deposit liabilities (in the financial institution’s books). [Volume 1: 1.4.1.2]
Own equity derivatives: are contracts, for future delivery (or receipt) of the issuing entity’s own equity instruments. [Volume 2: 1.1]
Owner-occupied property: is property that: is Land, Building, part thereof, or both; is held by owner (or lessee as right-of-use asset); generates cash flows not largely independent from those of other assets; and is (or will be) held for production of goods, supply of services, or administrative purposes. [Volume 1: 5.2]
Paid-in capital stock: is the sum of: (1) amount paid, for the par (or issued) value of shares; and (2) premium paid over the par value, or APIC (additional paid-in capital). [Volume 2: 6.8]
Paid-up capital stock: is the portion of the authorized capital stock, which was subscribed, and actually paid. [Volume 2: 6.8]
Par value shares: are shares, with par value. [Volume 2: 6.2]
Past service cost: is the change in present value of the defined benefit obligation, for employees’ services in prior periods, resulting from a plan amendment (or curtailment). [Volume 2: 4.5.7.1]
Patentable invention: is any technical solution of problem in any field of human activity, which is new, inventive, and industrially applicable. [Volume 1: 6.6.1]
Performance condition: is a vesting condition, which requires: (1) fulfillment of service condition = wherein the counterparty explicitly (or implicitly) completes the required service period; and (2) achievement of specified performance target(s) = while the counterparty renders the required services. [Volume 2: 6.19.3]
Period of use: is the total period of time, to use the asset in fulfilling the contract with the customer (such as the number of units, produced through the use of the asset), including any non-consecutive periods. [Volume 2: 3.1]
Petty cash fund: is a stipulated amount of currency, for paying small expenses. [Volume 1: 1.5]
Petty cash voucher: is a business document, which indicates: the name, business style (if any), address, and tax identification number of the entity; the name, business style (if any), address, and tax identification number of the payee; the date of payment; the nature of expense; and the amount paid in figures, and in words. [Volume 1: 1.5]
Plan amendment: is the introduction (or withdrawal) of, or the change in benefits payable under, a defined benefit plan. [Volume 2: 4.5.7.1]
Plan assets: are assets, which comprise: (1) assets held by long-term employee benefit fund; and (2) qualifying insurance policies. [Volume 2: 4.5.2]
Plan curtailment: is a significant reduction (by the entity) in the number of employees (covered by the defined benefit plan), and may result from isolated event, such as closure of a plant, discontinuance of an operation, or suspension (or termination) of a plan. [Volume 2: 4.5.7.1]
Plan settlement: is a transaction, which eliminates all further legal (or constructive) obligations, for part (or all) of the benefits provided under a defined benefit plan, except payment of benefits to (or on behalf of) employees that is: (1) provided in the terms of the defined benefit plan; and (2) included in actuarial assumptions. [Volume 2: 4.5.7.1]
Pledge: is a mode of financing, whereby all trade receivables secure a loan. [Volume 1: 2.8]
Postdated check: is a check dated after today. [Volume 1: 1.1]
Post-employment benefit plans: are formal (or informal) arrangements, wherein the entity provides post-employment benefits for employees. [Volume 2: 4.3]
Post-employment benefits: are employee benefits (except short-term employee benefits and termination benefits), which are payable after completion of employment. [Volume 2: 4.2]
Post-production storage costs: are storage costs, after production process, but before delivery to customer. [Volume 1: 3.2.3]
Post-retail transport costs: are carriage and insurance costs, from one retail location, to another retail location (or customer locations). [Volume 1: 3.2.3]
Potential current period errors: are omissions from (and misstatements in) the reporting entity’s financial statements that corrected before financial statements (for current reporting period) are authorized for issue. [Volume 2: 6.10.1]
Potential obligation: is an obligation, wherein the entity is potentially required (in at least one circumstance), to transfer economic resources (to another party). [Volume 2: 2.1]
PP&E (Property, plant, and equipment): are tangible items that will be used beyond one reporting period, and held for production of goods, supply of services, rental to others (except land, building, part thereof, or both), or administrative purposes. [Volume 1: 4.1]
PP&E (property, plant, and equipment): are tangible items that will be used beyond one reporting period, and held for: (1) production of goods; (2) supply of services; (3) rental to others, except Land, Building, part thereof, of both; or (4) administrative purposes. [Volume 2: 3.11]
Practical expedient for significant financing component: is the non-adjustment of the promised amount of consideration, for the effects of a significant financing component, because the entity expects at contract inception, that the period between the transfer of the promised goods (or services), and the payment thereof, will be within one year. [Volume 1: 2.5]
Pre-exploration phase: is the compliance with requirements for Exploration Permit, from filing of application for Exploration Permit, until issuance of Certification of final resolution of adverse claim, protest, or opposition. [Volume 1: 9.16]
Pre-Feasibility study: is the comprehensive study of range of options, for the technical and economic viability of a mineral project, that has advanced to a stage where a preferred mining method (for underground mining), or the pit configuration (for open pit mining), is established, and an effective method of mineral processing is determined; that includes a financial analysis, based on reasonable assumptions on the Modifying Factors, and the evaluation of other relevant factors, sufficient to determine if all (or part) of the Mineral Resource may be converted to a Mineral Reserve; and that has a lower confidence level than a Feasibility Study. [Volume 1: 9.16.3]
Preferred shares: are shares, issued only with par value, and with preference, such as in the distribution of prorated share in dividends (and net assets, upon liquidation). [Volume 2: 6.2]
Prepaid lease expense: is the portion of initial direct costs, which will be systematically recognized as lease expense, in profit or loss over the remaining lease term. [Volume 2: 3.18]
Prepayment: is any amount paid, before being required to do so. [Volume 2: 4.5.5.2.2]
Present obligation: is an obligation, wherein the entity has acted (or has already obtained economic benefits), and will (or may have to) transfer economic resources, which it would not otherwise have had to transfer. [Volume 2: 2.1]
Present value of lease payments receivable: is the net investment in the lease; minus, present value of any unguaranteed residual value. [Volume 2: 3.15]
Pre-tax best estimate of provisions (except onerous contracts): is the rational pre-tax payment (on reporting date), to settle (or transfer) the present (or probable) obligation. [Volume 2: 2.5.1]
Principal: is the fair value (upon initial recognition) that changes over the life of the debt instrument, to the contractual amount upon maturity. [Volume 1: 2.2]
Prior period errors: are omissions from (and misstatements in) the reporting entity’s financial statements, for one (or more) prior periods (including effects of mathematical mistakes, mistakes in applying accounting policies, oversights, misinterpretations of facts, and fraud), resulting from failure to use (or misuse of) faithfully represented information: (1) that was available, when financial statements (for those prior periods) were authorized for issue; (2) that could have been obtained and included, in preparing and presenting those financial statements; and (3) that are corrected in the first set, of financial statements (authorized for issue) after discovery (of those errors). [Volume 2: 6.10.1]
Prior period errors occurring before earliest period presented: are prior period errors, which are corrected by restating opening balances (of assets, liabilities, and equity), for the earliest period presented. [Volume 2: 6.10.2]
Prior period errors occurring in prior periods presented: are prior period errors, which are corrected by restating comparative amounts, for prior periods (wherein errors occurred). [Volume 2: 6.10.2]
Private gratuitous permit: is gratuitous permit, whereby the Landowner quarries quarry resources, sand, gravel, and other loose (or unconsolidated) materials, from own land for own use, for a non-renewable period of 60 days. [Volume 1: 9.15.3]
Probable: means more likely than not, such that likelihood of occurrence is more than 50%. [Volume 2: 2.2]
Probable mineral reserves: are the economically minable part of indicated (or measured) mineral resources, with confidence in modifying factors lower than that of proved mineral reserves, but can be the basis on whether to develop the mineral deposits. [Volume 1: 9.14]
Procreation: is the creation of additional biological assets. [Volume 1: 7.2]
Production: is the harvest of agricultural produce. [Volume 1: 7.2]
Production phase: is the commercial obtainment from mineral reserves of mineral products and byproducts, from issuance of MPP, until notification of end of profitable operating life of mining project. [Volume 1: 9.16]
Production stripping costs: are costs of removing overburden (mine waste materials) to gain access to mineral ore deposits, in production phase surface mining operations. [Volume 1: 9.22]
Profit or loss: is the total income; minus, total expenses (excluding components of other comprehensive income). [Volume 2: 6.15]
Projected credit unit method: is the method of measuring the present value of defined benefit obligations, wherein: (1) each period of service results to additional unit (of defined benefit entitlement); and (2) Each additional unit is separately measured, to accumulate the final obligation. [Volume 2: 4.5.4.1]
Prorated restatement of carrying amount: is a method of adjusting: the carrying amount; to the fair value on revaluation date, of a revalued item of PP&E (property, plant, and equipment), wherein the gross carrying amount and the accumulated depreciation are proportionally restated. [Volume 2: 6.11.5.2]
Proved mineral reserves: are the economically minable part of measured mineral resources, with confidence in modifying factors higher than that of probable mineral reserves. [Volume 1: 9.14]
Provisions: are liabilities, with uncertain timing (or amount). [Volume 2: 2.1]
Prudence: is the exercise of caution in judgments (under conditions of uncertainty), such that: (1) assets and income are not overstated; (2) liabilities and expenses are not understated; (3) understatement of assets (or income) is disallowed (and not merely discouraged); and (4) overstatement of liabilities (or expenses) is disallowed (and not merely discouraged). [Volume 2: 6.11.1]
Purchased call option: is a call option, wherein: (1) the issuing entity (as call option holder) pays fixed price (as call option premium), to the counterparty (as call option writer), for the right to buy fixed number of its own equity instruments (from that counterparty), in exchange for fixed amount of cash, at fixed future date; and (2) the counterparty (as call option writer) receives fixed price (as call option premium), from the issuing entity (as call option holder), for the obligation to sell fixed number of the issuing entity’s own equity instruments (to that issuing entity), in exchange for fixed amount of cash, at fixed future date. [Volume 2: 6.7]
Purchased put option: is a put option, wherein: (1) the issuing entity (as put option holder) pays fixed price (as put option premium), to the counterparty (as put option writer), for the right to sell fixed number of its own equity instruments (to that counterparty), in exchange for fixed amount of cash, at fixed future date; and (2) the counterparty (as put option writer) receives fixed price (as call option premium), from the issuing entity (as put option holder), for the obligation to buy fixed number of the issuing entity’s own equity instruments (from that issuing entity), in exchange for fixed amount of cash, at fixed future date. [Volume 2: 6.7]
Puttable financial instrument: is a financial instrument, (1) wherein the issuing entity has contractual obligation, to repurchase (or redeem) the instrument from the holder thereof, for cash (or another financial asset); and (2) wherein the holder thereof has contractual right, to put the instrument back to the issuing entity, for cash (or another financial asset); or (3) which is automatically put back to the issuing entity, upon occurrence of uncertain future event, or upon the instrument holder’s death (or retirement). [Volume 2: 6.1.2]
Qualifying assets: are assets that necessitate a substantial period to prepare for their intended use (or sale). [Volume 1: 4.5.5]
Qualifying insurance policies: are insurance policies (not necessarily insurance contracts) issued by an insurer (unrelated to the reporting entity), whose proceeds: (1) can be used, only to pay (or fund) defined benefits; (2) are unavailable, to the reporting entity’s own creditors (despite bankruptcy); and (3) cannot be paid to the reporting entity, unless: (a) the proceeds represent surplus assets (without which the policy can nonetheless fulfill all related defined benefit obligations); or (b) the proceeds are returned, to reimburse the reporting entity (for defined benefits already paid). [Volume 2: 4.5.2]
Quarry permit: is a permit for medium-scale quarry operations, of common rocks and other mineral substances, which are declared as quarry resources. [Volume 1: 9.15]
Raw materials: are inventories, in the form of materials to be consumed in the production process (or in the rendering of services). [Volume 1: 3.1]
Readily available resources: are inventories (or services) that: (1) the lessor (or other supplier) sells (or separately leases); or (2) the lessee obtained from the lessor, or from other transactions (or events). [Volume 2: 3.5]
Reclassification adjustments: are amounts that were included in other comprehensive income in prior periods (or in the current reporting period), but were reclassified to profit or loss (in the current reporting period). [Volume 2: 6.15]
Reconnaissance: is the identification of the existence of surface signatures (distinctive surface characteristics), and includes: Interpretation of aerial photographs; Remote sensing; Geographic information system; Global positioning system; Topographic survey; Geological mapping; Geophysical survey; Purchase of seismic program (or seismic data); and Internal development of innovative technology. [Volume 1: 9.16.2]
Recoverable amount: is the higher of: FVLCD (Fair value less costs of disposal); or VIU (Value in use). [Volume 1: 4.7.4]
Redeemable shares: are shares, which: (1) may be issued, if expressly provided in the AOI(articles of incorporation); and (2) may be purchased (by the corporation, from holders thereof: (a) upon expiry of fixed period, regardless of existence of unrestricted retained earnings (in the corporation’s books), and (b) upon other terms and conditions (stated in the AOI, and in the certificate of stock), subject to rules and regulations issued by the SEC (Securities and Exchange Commission). [Volume 2: 6.2]
Refund liability with right of return: is a liability, wherein the customer, after returning goods within standard (or implied) return period, for inferior quality of certain goods delivered, will receive any combination of: (1) full (or partial) refund of any consideration paid; (2) credit memo, applicable against amounts owed (or will be owed) to the entity; and (3) another product in exchange. [Volume 2: 2.8]
Refund liability without right of return: is a liability, wherein the customer (without returning goods) will receive: (1) prompt settlement discount, for fully paying the invoice within discount period; (2) full (or partial) refund within standard (or implied) refund period, for inferior quality of a certain service rendered; or (3) retrospective price reduction, for attaining a certain threshold of purchases. [Volume 2: 2.8]
Regular way transaction: is a purchase (or sale) under a contract, that requires delivery of financial asset, within the time frame generally established, by regulation (or by marketplace convention). [Volume 1: 2.4]
Reimbursement rights: are rights, which are: (1) recognized as separate asset, if it is virtually certain that another party will reimburse some (or all) expenditures, required to settle a defined benefit obligation; and (2) measured at fair value, like plan assets. [Volume 2: 4.5.2.2]
Reload feature: is a feature (in share option), which provides for automatic grant of reload option. [Volume 2: 6.19.7.1]
Reload option: is a new share option, which is automatically granted, whenever the option holder uses the reporting entity’s shares (rather than cash), to pay the exercise price (of a previously granted share option). [Volume 2: 6.19.7.1]
Remote: is construed, as close to uncertainty, and any remaining certainty is insignificant. [Volume 2: 2.3]
Replacement cost: is a subsequent expenditure on PP&E (property, plant, and equipment), which involves a substitution of a significant part (or the group of all insignificant parts); is not deemed as an upgrade from the intended operating condition of the item; and is recognized as part of the cost of the item of PP&E. [Volume 2: 2.7]
Repurchase agreement: is a contract, whereby the entity sells an asset, and may be in the form of: (1) forward contract (wherein the entity has the obligation, to repurchase the asset); (2) call option (wherein the entity has the right, to repurchase the asset); or (3) put option (wherein the entity has the obligation, to repurchase the asset, at the option of the customer). [Volume 2: 3.28.1]
Required (and not merely encouraged) sources of accounting policies: are these sources (in descending order): (1) all (not selected) aspects of requirements and guidance in IFRS Accounting Standards (dealing with similar and related issues); and (2) definitions, recognition criteria, and measurement concepts, for assets, liabilities, income, and expenses (in the Conceptual Framework). [Volume 2: 6.11.2]
Research: is the original and planned investigation, which is undertaken to gain new scientific (or technical) knowledge and understanding. [Volume 1: 6.3.1]
Research phase: is the phase, wherein no item of Intangible assets has yet emerged, and expenditures herein are recognized as expenses when incurred. [Volume 1: 6.3]
Residual approach: is the determination (of the estimated stand-alone price), based on the consideration in the contract; minus, the observable stand-alone prices (of other lease and non-lease components), if the stand-alone price (of the separately identified contract component) is uncertain, or the historical stand-alone price thereof is highly variable. [Volume 2: 3.5.3]
Residual value: is the amount (net of disposal costs) currently obtainable from disposal, if the significant part (or remainder) of an item of PP&E, were in its future age and condition, at the end of its useful life. [Volume 1: 4.6.3]
Residual value: is: (1) for PP&E (property, plant, and equipment), is the amount (net of disposal costs) currently obtainable from disposal, if the significant part (or remainder) of an item of PP&E were in its future age and condition (at the end of its useful life); and (2) for intangible assets with finite useful life, is assumed zero, unless: (a) third party commits to purchase the item (at the end of its useful life); or (b) active market will probably exist, from which residual value of the item will be measured (at the end of its useful life). [Volume 2: 5.8]
Restructuring: is a program, which the entity’s management plans and controls, and which materially changes, either: (1) the scope of business operations; or (2) the manner of business management. [Volume 2: 2.8]
Retail method: is a method that uses a formula, to convert retail prices to cost. [Volume 1: 3.2.7]
Retained earnings: are the accumulated actual profits, which are realized from the corporation’s normal and continuous operations, after deductions for: (1) distributions to shareholders; and (2) transfers to capital stock (or other accounts). [Volume 2: 6.16]
Retrospective amendment: is the correction of the classification, measurement, and presentation of the subsidiary, joint operation, joint venture, associate, or portion of interest in joint venture (or associate) in the financial statements, as if the classification as held for sale had never occurred. [Volume 1: 8.7]
Retrospective application: is the application of new accounting policy (to transactions, other events, and conditions), as if that policy had always been applied. [Volume 2: 6.11.5]
Retrospective restatement: is the correction, of the recognition, measurement, presentation, and disclosure of the elements of financial statements (as if prior period errors had never occurred). [Volume 2: 6.10.2]
Return on plan assets: is the interest, dividends, realized and unrealized gains (or losses), and other income derived from plan assets; minus: (1) any costs of managing plan assets, except other administration costs; and (2) any taxes payable by the defined benefit plan, except those included in actuarial assumptions for measuring the present value of the defined benefit obligation. [Volume 2: 4.5.7.3.2]
Revaluation gain: is the increase, from the revalued amount, to the lower of, the fair value on revaluation date or the original carrying amount, which is presented in the financial statements, in identical manner as Impairment gain in profit or loss. [Volume 1: 4.6.7]
Revaluation loss: is the decrease, from the lower of, the original carrying amount or the revalued amount, to the fair value on revaluation date, which is presented in the financial statements, in identical manner as Impairment loss in profit or loss. [Volume 1: 4.6.7]
Reverse split: is the decrease in number of outstanding shares, and corresponding increase in par (or issued) value per share. [Volume 2: 6.13]
Right-of-use asset: is an asset that represents the lessee’s right to use, the identified asset for the lease term. [Volume 2: 2.8]
Risk-neutral world: is a world, where investors require no extra return for bearing risks, and the expected return on all securities is the risk-free interest rate. [Volume 2: 6.19.9]
Sale and leaseback transaction: is a transaction, whereby the seller-lessee: (1) transfers control of an asset (to the buyer-lessor); and (2) leases back that asset (from the buyer-lessor). [Volume 2: 3.28]
Sand and gravel permit: is a permit for medium-scale quarry operations of sand, gravel, and other loose (or unconsolidated) materials. [Volume 1: 9.15]
Savings accounts: are demand deposits, which are withdrawable through Automated Teller Machines (or upon presentment of withdrawal slip), and are interest-bearing. [Volume 1: 1.1]
Scoping study: is the order of magnitude technical and economic study, of the potential viability of Mineral Resources, that includes appropriate assessments of realistically assumed Modifying Factors, and other relevant operational factors, necessary to reasonably justify progress to a Pre‐Feasibility Study. [Volume 1: 9.16.3]
Screening: is the separation of crushed particles, through hard metallic screen, with perforated surface and uniform dimension of aperture. [Volume 1: 9.16.5]
Security deposit: is the amount, which: (1) the lessee must pay to the lessor, on (or before) the lease commencement date; (2) ensures the lessee’s faithful and full compliance, with the terms and conditions of the lease; (3) settles any obligation to third parties, that the lessee may incur, for the use of the identified asset; (4) may not be applied as payment, for any rentals due under the lease; (5) may be withheld by (or forfeited in favor of) the lessor, if the lessee violates, any of the terms and conditions of the lease; and (6) shall be refunded by the lessor to the lessee, after end of the lease term, and after ascertaining no further obligations, of the lessee under the lease. [Volume 2: 3.9]
Semi-detailed exploration: is the sampling of surface signatures, and includes: Soil sampling; Pitting; Trenching; Stack sampling; Alluvial placer sampling; Channel sampling; Chip sampling; Diamond drill core sampling; Sludge sampling; Reverse circulation drill sampling; Grab sampling; Muck sampling; Car sampling; Bulk sampling; and Ocean bed sampling. [Volume 1: 9.16.2]
Service charges: are fees imposed by the financial institution, and include maintenance charge, dormancy charge, and service fees for dishonored checks. [Volume 1: 1.4.1.1]
Service condition: is a vesting condition, which requires: (1) completion of service period = wherein the counterparty (including an employee, acting as such) explicitly (or implicitly) renders services to the reporting entity (or another group entity), during the vesting period; and (2) no achievement of any performance target. [Volume 2: 6.19.3]
Servicing cost: is a subsequent expenditure on PP&E (property, plant, and equipment), which may involve a substitution of some (but not all) insignificant parts; and is recognized as repairs and maintenance, in profit or loss. [Volume 2: 2.7]
Settlement gain (or loss): is the excess (on plan settlement date) of: the present value of defined benefit obligation being settled; over the settlement price. [Volume 2: 4.5.7.1]
Share option: is a contract, wherein the option holder has the right (but not the obligation), to subscribe to the shares of the reporting entity (as option writer), for fixed (or determinable) price, at fixed (or determinable) future date. [Volume 2: 6.19]
Share split: is the increase in number of outstanding shares, and corresponding decrease in par (or issued) value per share. [Volume 2: 6.13]
Share-based payment arrangement: is an agreement, between: the reporting entity, another group entity, or any shareholder of any group entity; and a counterparty (including an employee, acting as such), whereby that counterparty is entitled to receive (upon fulfillment of any specified vesting conditions): (1) equity instruments (including shares, and share options), of the reporting entity (or another group entity); or (2) cash (or other assets) of the reporting entity, for amounts that are based on the fair value of equity instruments (including shares, and share options), of the reporting entity (or another group entity). [Volume 2: 6.19]
Share-based payment transaction: is a transaction, wherein the reporting entity (in share-based payment arrangement): (1) acquires goods (or receives services), from the supplier thereof (including an employee, acting as such); or (2) incurs an obligation to settle the transaction, when another group entity acquires goods (or receives services), from the supplier thereof (including an employee, acting as such). [Volume 2: 6.19.1]
Short seller: is an entity that sells borrowed (and not yet owned) financial assets. [Volume 2: 1.2.1]
Short term investments: are investments that normally mature within 3 months from acquisition date, and include debit and credit card receivables; and time deposits that, when pre-terminated, are downgraded to a status, not lower than savings accounts. [Volume 1: 1.2.1]
Short-term employee benefits: are employee benefits (except termination benefits), which will be wholly settled, before 12 months from end of annual reporting period (wherein employees rendered the related services). [Volume 2: 4.2]
Short-term leases: are leases, wherein the lease term is 12 months (or less), except those with purchase option. [Volume 2: 3.10.1]
Significant influence: is the power to participate in (but not control or joint control of) the investee’s financial and operating policy decisions. [Volume 1: 2.9.1]
Sinking fund: is a fund, (1) wherein cash is gradually saved: (a) to accumulate the necessary amount; and (b) to pay the redemption price of redeemable shares, at specified future dates); and (2) which: (a) is deposited with a trustee bank; and (b) shall not be invested in risky (or speculative) ventures. [Volume 2: 6.5.4]
Site restoration: is the bringing back of the operating site, to acceptable condition. [Volume 2: 2.8]
Small-scale mining permit: is a permit for small-scale mining operations, of up to 50,000 metric tons annually, for an area of 20 hectares. [Volume 1: 9.15]
Solidary provision: is a provision, whereby the entity can be obliged (to settle the whole provision, with right to reimbursement, from other entities for their proportional shares), and any financial incapacity (of another entity) will proportionally increase its pre-tax best estimate. [Volume 2: 2.5.3]
Special (or chartered) corporation: is a corporation, which (1) is created by special law (or charter); and (2) is governed primarily by provisions of the special law (or charter), supplemented by applicable provisions of the RCC (Revised Corporation Code). [Volume 2: 6.2]
Stale check: is a check dated more than 6 months before today. [Volume 1: 1.1]
Standalone price: is the price, at which an entity will separately sell the lease (or non-lease) component (to a customer, on lease inception date). [Volume 2: 3.5.3]
Standard cost method: is a costing system that traces direct materials and direct labor, and allocates production overheads, to units produced. [Volume 1: 3.2.7]
State plans: are post-employment benefit plans, which: (1) are established by legislation, to cover all entities (or only entities in a particular category); (2) are operated by the national (or local) government, or a specifically created autonomous agency; (3) are subject, to no control (or influence) of the entity; and (4) exclude plans (established by the entity), which provide: (a) compulsory post-employment benefits (as substitute for those provided by state plans); and (b) additional voluntary benefits. [Volume 2: 4.3.2.3]
Stock corporation: is a corporation, (1) which is created under the RCC (Revised Corporation Code); (2) with capital stock (divided into shares without minimum, unless special law provides otherwise); (3) composed of shareholders; and (4) authorized to distribute dividends, based on shareholdings. [Volume 2: 6.2]
Straight-line depreciation method: is a depreciation method, whereby depreciation charges are equal, and repairs and maintenance are equal, over the useful life. [Volume 1: 4.6.6.1.1]
Sublease: is a transaction, whereby the intermediate lessor (also original lessee) leases the identified asset to a third party (now sublessee), while the head lease (also original lease) remains effective. [Volume 2: 3.27]
Subscribed capital stock: is the amount that: (1) the corporation receives (including any premiums), as consideration for the original issuance of shares; (2) for share dividends, is the amount that the corporation transfers, from its unrestricted retained earnings account to its capital stock account; (3) can be loosely termed, as the corporation’s trust fund; (4) until the corporation’s liquidation, no part thereof may be returned (or released) to any shareholder (except for redemption of redeemable shares), without violating the trust fund doctrine; (5) must never be impaired by dividends; (6) for subscription commitments, cannot be condoned (or remitted); and (7) cannot be used (by the corporation), as consideration for buying its own shares. [Volume 2: 6.8]
Subscription (for shares): is one, entire, and absolutely indivisible whole contract, wherein: (1) partial payments are proportionately applied (to all subscribed shares); and (2) the corporation cannot issue certificates of stock (for the portion of the subscription that is paid), and cancel the portion that remains unpaid. [Volume 2: 6.4]
Substantially all: is construed as 95% (or more). [Volume 2: 3.1.5]
Sum-of-years’-digits depreciation method: is a depreciation method, whereby depreciation charges are decreasing by equal amounts, and repairs and maintenance are increasing by equal amounts, over the useful life. [Volume 1: 4.6.6.1.1.2]
Tailing management: is the careful handling and disposal of the fine rejects of dry concentrates, to preserve ecological balance in surroundings of the mine site, through continuous reclamation and recycling, of tailing thickener overflow, excess water from tailing pond, and tailing dam underflow. [Volume 1: 9.16.5]
Tax base: is the amount attributed to an asset (or a liability), for tax purposes. [Volume 2: 5.3]
Taxable profit (or tax loss): is the profit (or loss) for a taxable period (taxable month, quarter, or year), determined pursuant to rules (Revenue Regulations, Revenue Memorandum Circulars, and Revenue Memorandum Orders implementing the NIRC), established by taxation authorities (Department of Finance, and Bureau of Internal Revenue), upon which income taxes are payable (or recoverable). [Volume 2: 5.1]
Taxable temporary differences: are temporary differences, which result to future taxable (or non-deductible) amounts, such that: (1) carrying amount exceeds tax base of the asset; or (2) tax base exceeds carrying amount of the liability. [Volume 2: 5.3]
Temperate (or moderate) damages: are damages recovered, when some pecuniary loss has been suffered, but its amount cannot be provided, with certainty. [Volume 2: 2.5]
Temporary differences: are differences between: (1) carrying amount of the asset (or liability) in the statement of financial position; and (2) tax base of the asset (or liability) in the income tax return. [Volume 2: 5.3]
Temporary overdrawing (or Bank overdraft): is a negative (or overdrawn) balance in demand deposit; and is disallowed, unless caused by normal bank charges (or incidental handling fees). [Volume 1: 1.3]
Termination benefits: are employee benefits, which are provided in exchange for termination of an employee’s employment. [Volume 2: 4.2]
Time deposits: are highly liquid investments, which are interest-bearing deposits, evidenced by certificates that, upon maturity, are automatically credited to savings accounts, unless pre-arranged for automatic renewal. [Volume 1: 1.2.2]
Time frame: is the period, that the parties reasonably and customarily require, to prepare and execute the closing documents, and to complete the transaction. [Volume 1: 2.4]
Time value of money element (of call option’s fair value): is any excess of fair value, over intrinsic value element. [Volume 2: 6.7.3.1]
Time value of money element (of forward contract’s fair value): is any excess of fair value, over intrinsic value element. [Volume 2: 6.7.2.1]
Time value of money element (of put option’s fair value): is any excess of fair value, over intrinsic value element. [Volume 2: 6.7.4.1]
Time-based depreciation methods: are depreciation methods, whereby passage of time primarily affects the consumption pattern. [Volume 1: 4.6.6.1]
Total amount due: is the unpaid subscription; plus, accrued interest, advertisement costs, and auction expenses. [Volume 2: 6.4]
Total comprehensive income: is the change in equity (during a reporting period), resulting from transactions (and other events), except those resulting from transactions with owners (acting as such). [Volume 2: 6.15]
Total nonrecyclable other comprehensive income: is the total of items, which will be reclassified to ‘retained earnings’, when specific conditions are fulfilled. [Volume 2: 5.13]
Total recyclable other comprehensive income: is the total of items, which will be reclassified to ‘profit or loss’, when specific conditions are fulfilled. [Volume 2: 5.13]
Trade name (also business name, company name, or corporate name): is the name (or designation) that is protected (although unregistered) against third parties, and that identifies (or distinguishes) an entity, or the name by which it operates (or does business). [Volume 1: 6.9.1]
Trade payables: are liabilities for goods (or services) delivered (or rendered) to the entity, and are already invoiced (or billed) by the supplier. [Volume 2: 2.1]
Traditional approach: is the use of single set of cash flow projections, and risk-adjusted discount rate, to measure the VIU. [Volume 1: 4.7.4.4.4]
Transaction costs: are incremental costs, which are directly attributable to the issuance, acquisition, or disposal of a financial asset (or liability). [Volume 1: 2.5.1]
Transaction price: is the amount of consideration, to which the entity will be entitled, for transferring promised goods (or services) to a customer, excluding amounts collected on behalf of third parties. [Volume 1: 2.5]
Treasury bills: are highly liquid investments, which are government securities issued at a discount on face value, and maturing in less than one year. [Volume 1: 1.2.2]
Treasury bonds: are highly liquid investments, which are government securities issued at face value, and maturing in more than one year. [Volume 1: 1.2.2]
Treasury shares: are shares, which: (1) are issued and fully paid for, but subsequently reacquired through lawful means (such as purchase, redemption, and donation); and (2) may again be disposed of, for reasonable price fixed by the BOD (board of directors). [Volume 2: 6.2]
Trust fund doctrine: is the doctrine, which provides, that: (1) subscription (to the corporation’s capital) constitutes a fund (to which creditors have a right to look, for satisfaction of their claims); (2) the assignee in insolvency can maintain an action, upon any unpaid stock subscription, to realize assets for payment of its debts; (3) the corporation has no power, to release an original subscriber (from the obligation to pay for his shares), without valuable consideration for those shares; and (4) capital stock can be reduced, only in the manner (and under the conditions) prescribed by the statute, the charter, or the AOI. [Volume 2: 6.9]
Unavoidable cost (or least net exit cost): is the lower of: (1) costs to fulfill the contract; or (2) damages for failure to fulfill the contract (regardless of the entity’s intention). [Volume 2: 2.5]
Unavoidable obligation: is a duty (or responsibility), wherein the entity has no practical ability to avoid. [Volume 2: 2.1]
Uncertain tax treatment: is the entity’s tax treatment, for which: (1) meaning of the tax law (or applicability thereof to a particular transaction) is unclear; (2) acceptability thereof is unknown until finally decided (by the relevant taxation authority); (3) denial thereof will affect the entity’s determination of taxable profit (or tax loss), unused tax losses and credits, and tax bases and rates; (4) likelihood of acceptance thereof (by the relevant taxation authority) is improbable; or (5) acceptability thereof is denied (by the relevant taxation authority), but is deemed disputed until finally resolved (by the relevant court). [Volume 2: 5.9]
Undiscounted benchmark cash flows: are the undiscounted cash flows, without modification of the time value of money element of the interest rate. [Volume 1: 2.2.3]
Undiscounted contractual cash flows: are the undiscounted cash flows, after modification of the time value of money element of the interest rate. [Volume 1: 2.2.3]
Unguaranteed residual value: is the portion (of the identified asset’s expected residual value), the realization of which (by the lessor) is not assured, or is guaranteed solely by a party (related to the lessor). [Volume 2: 3.15]
Unrestricted retained earnings: are the amount of retained earnings, which is not: (1) appropriated by the BOD, for definite corporate expansion projects (or programs); (2) covered by a restriction for dividend declaration, under a loan agreement; and (3) required to be retained, under the corporation’s special circumstances (such as when special reserve is needed, for probable contingencies). [Volume 2: 6.16]
Unwinding of the discount: is the increase in the carrying amount of a provision (except onerous contract), to reflect the passage of time. [Volume 2: 2.6]
Use life: is either: the expected period of usage; or the expected units of production. [Volume 2: 3.3]
Utility model: is any technical solution of problem in any field of human activity, which is new, and industrially applicable. [Volume 1: 6.7.1]
Variable amount of cash: is the amount of cash, which may be equal to the value of: (1) fixed amount of foreign currency; (2) specified quantity of commodity (such as 100 ounces of gold); or (3) specified quantity of financial instruments (such as 100 specified government bonds). [Volume 2: 6.1.4]
Variable lease payments: are the portion of the lease payments that varies, due to changes in facts (or circumstances), except passage of time, after the lease commencement date. [Volume 2: 3.3]
Variable production overheads: are indirect production costs that: vary directly (or nearly directly) with production volume; and are allocated to each production unit, based on actual use of production facilities. [Volume 1: 3.2.2]
Variable-declining-balance depreciation method: is a depreciation method, whereby depreciation charges are decreasing by decreasing amounts, and repairs and maintenance are increasing by increasing amounts, over the useful life. [Volume 1: 4.6.6.1.1.2]
Vesting condition: is a condition, which determines whether the reporting entity (or another group entity) receives the services, which entitle the counterparty (including an employee, acting as such) to receive cash, other assets, or equity instruments (including shares, and share options) of the reporting entity (or another group entity), in share-based payment arrangement. [Volume 2: 6.19.3]
Vesting date: is the date, when further services (by employees) result to further salary increases, but no material amounts of further benefits (under the defined benefit plan). [Volume 2: 4.5.4.2.2]
Vesting period: is the period, during which the most likely outcome is that all specified vesting conditions (in the share-based payment arrangement) will be fulfilled. [Volume 2: 6.19.3]
Virtually certain: is construed, as close to certainty, and any remaining uncertainty is insignificant. [Volume 2: 2.4]
VIU (Value in use): is the present value, of future cash flows obtainable from continuing use and from ultimate disposal of the asset (or CGU). [Volume 1: 4.7.4]
Voting shares: are the compulsory classification of shares, with complete voting rights. [Volume 2: 6.2]
Work in progress: are inventories, in the process of production for subsequent sale. [Volume 1: 3.1]
Written call option: is a call option, wherein: (1) the issuing entity (as call option writer) receives fixed price (as call option premium), from the counterparty (as call option holder), for the obligation to sell fixed number of its own equity instruments (to that counterparty), in exchange for fixed amount of cash, at fixed future date; and (2) the counterparty (as call option holder), pays fixed price (as call option premium), to the issuing entity (as call option writer), for the right to buy fixed number of the issuing entity’s own equity instruments (from that issuing entity), in exchange for fixed amount of cash, at fixed future date. [Volume 2: 6.7]
Written put option: is a put option, wherein: (1) the issuing entity (as put option writer) receives fixed price (as put option premium), from the counterparty (as put option holder), for the obligation to buy fixed number of its own equity instruments (from that counterparty), in exchange for fixed amount of cash, at fixed future date; and (2) the counterparty (as put option holder), pays fixed price (as put option premium), to the issuing entity (as put option writer), for the right to sell fixed number of the issuing entity’s own equity instruments (to that issuing entity), in exchange for fixed amount of cash, at fixed future date. [Volume 2: 6.7]
WSPO checks: are dishonored checks, which the financial institution stamped as: With Stop Payment Order. [Volume 1: 1.4.1.1]