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Explains thin capitalisation terms we use that begin with B.

Last updated 23 July 2024

Borrowed securities amount

Borrowed securities amounts are certain liabilities of an entity that relate to reciprocal purchase agreements, sell-buyback arrangements and securities loan arrangements.

A borrowed securities amount is relevant to calculating adjusted average debt and non-debt liabilities for financial entities.

An entity's borrowed securities amount at a point in time is the total of its liabilities that meet the following conditions:

  • the value of the liabilities is calculated by reference to the value, at that time, of the securities the entity has short sold
  • at that time, the entity has settled the sale using securities it acquired under one of the following arrangements  
    • a reciprocal purchase agreement
    • a sell-buyback arrangement
    • a securities loan arrangement.

For more information, see subsection 995-1(1) of the ITAA 1997.

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