CTHRepealedLegislation
AASB 5 - Non-current Assets Held for Sale and Discontinued Operations - July 2004
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Defined Terms
This appendix is an integral part of AASB 5.
| cash-generating unit | The smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. |
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| component of an entity | Operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the entity. |
| costs to sell | The incremental costs directly attributable to the disposal of an asset (or disposal group), excluding finance costs and income tax expense. |
| current asset | An entity shall classify an asset as current when:(a) it expects to realise the asset, or intends to sell or consume it, in its normal operating cycle;(b) it holds the asset primarily for the purpose of trading;(c) it expects to realise the asset within twelve months after the reporting period; or(d) the asset is cash or a cash equivalent (as defined in AASB 7) unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. |
| discontinued operation | A component of an entity that either has been disposed of or is classified as held for sale and:(a) represents a separate major line of business or geographical area of operations;(b) is part of a single co-ordinated plan to dispose of a separate major line of business or geographical area of operations; or |
| (c) is a subsidiary acquired exclusively with a view to resale. | |
| disposal group | A group of assets to be disposed of, by sale or otherwise, together as a group in a single transaction, and liabilities directly associated with those assets that will be transferred in the transaction. The group includes goodwill acquired in a business combination if the group is a cash‑generating unit to which goodwill has been allocated in accordance with the requirements of paragraphs 80-87 of AASB 136 Impairment of Assets or if it is an operation within such a cash‑generating unit. |
| fair value | Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. (See AASB 13.) |
| firm purchase commitment | An agreement with an unrelated party, binding on both parties and usually legally enforceable, that (a) specifies all significant terms, including the price and timing of the transactions, and (b) includes a disincentive for non‑performance that is sufficiently large to make performance highly probable. |