(c)
prices are available to the public.
The
agreement date for a business combination is the date that a
substantive agreement between the combining parties is
reached and, in the case of publicly listed entities,
announced to the public. In the case of a hostile takeover,
the earliest date that a substantive agreement between the
combining parties is reached is the date that a sufficient
number of the acquiree’s owners have accepted the acquirer’s
offer for the acquirer to obtain control of the acquiree.
Carrying
amount is the amount at which an asset is recognised after
deducting any accumulated depreciation (amortisation) and
accumulated impairment losses thereon.
A
cash-generating unit is 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.
Corporate
assets are assets other than goodwill that contribute to the
future cash flows of both the cash-generating unit under
review and other cash-generating units.
Costs of
disposal are incremental costs directly attributable to the
disposal of an asset or cash-generating unit, excluding
finance costs and income tax expense.
Depreciable
amount is the cost of an asset, or other amount substituted
for cost in the financial statements, less its residual
value.
Depreciation
(Amortisation) is the systematic allocation of the
depreciable amount of an asset over its useful life. (*)
Fair value
less costs to sell is the amount obtainable from the sale of
an asset or cash-generating unit in an arm’s length
transaction between knowledgeable, willing parties, less the
costs of disposal.
An
impairment loss is the amount by which the carrying amount
of an asset or a cash-generating unit exceeds its
recoverable amount.
The
recoverable amount of an asset or a cash-generating unit is
the higher of its fair value less costs to sell and its
value in use.
Useful life
is either:
(a) the
period of time over which an asset is expected to be
used by the entity; or
(b) the
number of production or similar units expected to be
obtained from the asset by the entity.
Value in use
is the present value of the future cash flows expected to be
derived from an asset or cash-generating
unit.
(*) In the
case of an intangible asset, the term ‘amortisation’ is
generally used instead of ‘depreciation’. The two terms have
the same meaning.
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