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acquisition date

The date on which the acquirer effectively obtains control of the acquiree.
 

agreement date

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.
 

business

An integrated set of activities and assets conducted and managed for the purpose of
providing:

(a) a return to investors; or

(b) lower costs or other economic benefits directly and proportionately to policyholders or participants.

A business generally consists of inputs, processes applied to those inputs, and resulting outputs that are, or will be, used to generate revenues. If goodwill is present in a transferred set of activities and assets, the transferred set shall be presumed to be a business.
 

business combination

The bringing together of separate entities or businesses into one reporting entity.
 

A business combination in which all of the combining entities or businesses ultimately are controlled by the same party or parties both before and after the combination, and that control is not transitory.

contingent liability

Contingent liability has the meaning given to it in IAS 37 Provisions, Contingent Liabilities
and Contingent Assets, ie:

(a) a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity; or

(b) a present obligation that arises from past events but is not recognised because:

(i) it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or

(ii) the amount of the obligation cannot be measured with sufficient reliability.
 

control

The power to govern the financial and operating policies of an entity or business so as to obtain benefits from its activities.
 

date of exchange

When a business combination is achieved in a single exchange transaction, the date of exchange is the acquisition date. When a business combination involves more than one exchange transaction, for example when it is achieved in stages by successive share purchases, the date of exchange is the date that each individual investment is recognised in the financial statements of the acquirer.

fair value

The amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction.
 

goodwill

Future economic benefits arising from assets that are not capable of being individually identified and separately recognised.
 

intangible asset

Intangible asset has the meaning given to it in IAS 38 Intangible Assets, ie an identifiable nonmonetary asset without physical substance.
 

joint venture

Joint venture has the meaning given to it in IAS 31 Interests in Joint Ventures, ie a contractual arrangement whereby two or more parties undertake an economic activity that is subject to joint control.
 

minority interest

That portion of the profit or loss and net assets of a subsidiary attributable to equity interests that are not owned, directly or indirectly through subsidiaries, by the parent.
 

mutual entity

An entity other than an investor-owned entity, such as a mutual insurance company or a mutual cooperative entity, that provides lower costs or other economic benefits directly and proportionately to its policyholders or participants.
 

parent

An entity that has one or more subsidiaries.
 

probable

More likely than not.
 

reporting entity

An entity for which there are users who rely on the entity’s general purpose financial statements for information that will be useful to them for making decisions about the allocation of resources. A reporting entity can be a single entity or a group comprising a parent and all of its subsidiaries.
 

subsidiary

An entity, including an unincorporated entity such as a partnership, that is controlled by another entity (known as the parent).