Defined Terms

This appendix is an integral part of the Standard.

income from a structured entity	For the purpose of this Standard, income from a structured entity includes, but is not limited to, recurring and non-recurring fees, interest, dividends, gains or losses on the remeasurement or derecognition of interests in structured entities and gains or losses from the transfer of assets and liabilities to the structured entity.
interest in another entity	For the purpose of this Standard, an interest in another entity refers to contractual and non-contractual involvement that exposes an entity to variability of returns from the performance of the other entity. An interest in another entity can be evidenced by, but is not limited to, the holding of equity or debt instruments as well as other forms of involvement such as the provision of funding, liquidity support, credit enhancement and guarantees. It includes the means by which an entity has control or joint control of, or significant influence over, another entity. An entity does not necessarily have an interest in another entity solely because of a typical customer supplier relationship.Paragraphs B7–B9 provide further information about interests in other entities.Paragraphs B55–B57 of AASB 10 explain variability of returns.
structured entity	An entity that has been designed so that voting or similar rights are not the dominant factor in deciding who controls the entity, such as when any voting rights relate to administrative tasks only and the relevant activities are directed by means of contractual arrangements.Paragraphs B22–B24 provide further information about structured entities.

income from a structured entity

For the purpose of this Standard, income from a structured entity includes, but is not limited to, recurring and non-recurring fees, interest, dividends, gains or losses on the remeasurement or derecognition of interests in structured entities and gains or losses from the transfer of assets and liabilities to the structured entity.

interest in another entity

For the purpose of this Standard, an interest in another entity refers to contractual and non-contractual involvement that exposes an entity to variability of returns from the performance of the other entity. An interest in another entity can be evidenced by, but is not limited to, the holding of equity or debt instruments as well as other forms of involvement such as the provision of funding, liquidity support, credit enhancement and guarantees. It includes the means by which an entity has control or joint control of, or significant influence over, another entity. An entity does not necessarily have an interest in another entity solely because of a typical customer supplier relationship.Paragraphs B7–B9 provide further information about interests in other entities.Paragraphs B55–B57 of AASB 10 explain variability of returns.

structured entity

An entity that has been designed so that voting or similar rights are not the dominant factor in deciding who controls the entity, such as when any voting rights relate to administrative tasks only and the relevant activities are directed by means of contractual arrangements.Paragraphs B22–B24 provide further information about structured entities.

The following terms are defined in AASB 127 (August 2011), AASB 128 (August 2011), AASB 10 and AASB 11 Joint Arrangements and are used in this Standard with the meanings specified in those Standards:

associate
consolidated financial statements
control of an entity
equity method
group
investment entity
joint arrangement
joint control
joint operation
joint venture
non-controlling interest
parent
protective rights
relevant activities
separate financial statements
separate vehicle
significant influence
subsidiary.

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