Understand the terms we use

Tax Planning & Advice Terms

Actuarial Gains & Losses

These comprise: (a) Experience adjustments (the effects of differences between the previous actuarial assumptions and what has actually occurred); and (b) the effects of changes in actuarial assumptions.

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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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Commutation

The process of converting a pension or annuity into a lump sum

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PAYG

An abbreviation for 'Pay As You Go' tax, where employees have income tax deducted from their wages or salary by their employer.

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Percentage of Completion Method

The recognition of revenue and expenses by reference to the stage of completion of a contract. Under this method contract revenue is matched with the contract costs incurred in reaching the stage of completion, resulting in the reporting of revenue, expen

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Unit Trust

A pooled investment structure set up under a trust deed where investors buy units in a trust that is managed by the fund manager on behalf of the investors. The value of units is set either by the market (if a listed trust) or by the trustees (if unlisted

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