A company's assets are classed as fixed assets if they are needed for ongoing use in the company's activities. Current assets refer to everything else that is not required for continued use.

The term "material" in this context implies the importance of information such that leaving it out or getting it wrong could reasonably influence decisions based on the company's financial statements. Items are considered material in relation to the context of similar items.

In this text, value adjustments for depreciation or diminution in the value of assets pertain to any amount deducted to allow for the decrease or decline in value of assets.

• The mentioned profit and loss account format in Part II includes amounts written off assets. This specifies the change in any value adjustment for depreciation or reduction in value of assets of that nature.
• Provisions in this context relates to any amount held that is deemed necessary for dealing with a liability that is well-defined in nature, exists at the financial year end, but the amount for which or the date it will be settled is uncertain.
• The purchase price of an asset or any materials or consumables used in the manufacturing of that asset refers to any cash or non-cash consideration that the company provides for that asset or materials.