LEGAL SERVICES COMMISSIONER ANNUAL REPORT 2012

23 Glossary of terms and style conventionsGloassryComprehensive resultThe net result of all items of incomeand expense recognised for the period.It is the aggregate of operating resultand other non-owner movementsin equity.DepreciationDepreciation is an expense thatarises from the consumption throughwear or time of a produced physicalor intangible asset. This expenseis classified as a ‘transaction’ andso reduces the ‘net result fromtransaction’.Employee benefits expensesEmployee benefits expenses includeall costs related to employmentincluding wages and salaries, leaveentitlements, redundancy paymentsand superannuation contributions.Ex-gratia paymentsEx-gratia payment is the gratuitouspayment of money where no legalobligation exists.Financial assetA financial asset is any asset that is:(a) cash;(b) an equity instrument of anotherentity;(c) a contractual right:• to receive cash or another financialasset from another entity; or• to exchange financial assets orfinancial liabilities with anotherentity under conditions that arepotentially favourable to the entity;or(d) a contract that will or may besettled in the entity’s own equityinstruments and is:• a non-derivative for which theentity is or may be obliged toreceive a variable number of theentity’s own equity instruments;or• a derivative that will or maybe settled other than by theexchange of a fixed amount ofcash or another financial assetfor a fixed number of the entity’sown equity instruments.Financial instrumentA financial instrument is any contractthat gives rise to a financial asset ofone entity and a financial liability orequity instrument of another entity.Financial assets or liabilities thatare not contractual are not financialinstruments.Financial liabilityA financial liability is any liability that is:(a) a contractual obligation:• to deliver cash or another financialasset to another entity; or• to exchange financial assets orfinancial liabilities with anotherentity under conditions that arepotentially unfavourable to theentity; or(b) a contract that will or may besettled in the entity’s own equityinstruments and is:• a non-derivative for which the entityis or may be obliged to deliver avariable number of the entity’s ownequity instruments; or• a derivative that will or may besettled other than by the exchangeof a fixed amount of cash or anotherfinancial asset for a fixed number ofthe entity’s own equity instruments.For this purpose the entity’s ownequity instruments do not includeinstruments that are themselvescontracts for the future receipt ordelivery of the entity’s own equityinstruments.78 Legal Services COMMISSIONER Annual Report 2012