Step 4: Calculate the worldwide gearing debt amount

Step 4.1: Calculate the entity's statement worldwide debt for the income year.

This amount is calculated using specified audited consolidated financial statements.

Insert this amount at Z on Worksheet 15: Inward investment vehicle (financial)'s step 4.

Statement worldwide debt is the amount of liabilities for the period less the following amounts:

• provisions
• liabilities in relation to distributions to equity participants
• trade payables
• deferred tax liabilities
• liabilities relating to employee benefits
• current tax liabilities
• deferred revenue
• liabilities relating to insurance
• any other amount specified by legislative instrument.

Refer to subsection 820-933(1) of the ITAA 1997.

Step 4.2: Calculate the entity's statement worldwide equity for the income year.

This amount is calculated using specified audited consolidated financial statements.

Insert this amount at AA on Worksheet 15: Inward investment vehicle (financial))'s step 4.

Statement worldwide equity is the amount of net assets for the period.

Refer to section 820-933(2) of the ITAA 1997.

Step 4.3: Divide the amount at Z by the amount at AA. This is the worldwide gearing ratio.

Insert the result at BB on Worksheet 15: Inward investment vehicle (financial)s step 4.

Dividing the statement worldwide debt by the statement worldwide equity establishes the worldwide gearing ratio.

Step 4.4: Add 1 (one) to the amount at BB (step 4.3).

Insert the result at CC on Worksheet 15: Inward investment vehicle (financial)'s step 4.

Step 4.4 and step 4.5 convert the ratio to a fraction, which is later applied to the entity's net Australian assets.

Step 4.5: Divide the amount at BB by the amount at CC.

Insert the result at DD on Worksheet 15: Inward investment vehicle (financial)'s step 4.

 N/A

Step 4.6: Multiply the amount at DD by H.

Insert the result at EE on Worksheet 15: Inward investment vehicle (financial)'s step 4.

This applies the ratio, expressed as a fraction, to net Australian assets H represents the net Australian assets funded by debt and equity, as calculated at H in Worksheet 10: Inward investment vehicle (financial)'s step 1.

Step 4.7: Add the average value of the entity’s zero capital amount (ZC) from worksheet 11 to the amount at EE.

Insert the amount at FF on Worksheet 15: Inward investment vehicle (financial)'s step 4.

 N/A

Step 4.8: If the entity does not have any associate entities, insert 0 (zero) at GG on Worksheet 15: Inward investment vehicle (financial)'s step 4.

Otherwise, calculate the average value of the entity's associate entity excess amount (Refer to the method statement in section 820-920 of the ITAA 1997) and insert the amount at GG on Worksheet 15: Inward investment vehicle (financial)'s step 4.

This increases the worldwide gearing debt amount by the average associate entity excess amount.

Step 4.9: Calculate the entity's worldwide gearing debt amount by adding the amounts at FF and GG.

The worldwide gearing debt amount represents the fraction of net Australian assets, increased by any relevant associate entity excess amount.

Step 4.1: Statement worldwide debt

(Z) __________

Step 4.2: Statement worldwide equity

(AA) __________

Step 4.3: Divide Z by  AA

(BB) __________

Step 4.4: BB + 1

(CC) __________

Step 4.5: Divide BB by CC

(DD) __________

Step 4.6: Multiply DD by amount at H on Worksheet 11: Inward investment vehicle (financial)'s step 2

(EE) __________

Step 4.7: Add EE to the amount at ZC on Worksheet 11: Inward investment vehicle (financial)'s step 2

(FF)

Step 4.8: Average associate entity excess amount

(GG) __________

Step 4.9: Worldwide gearing debt amount (FF + GG)

=      ___________