Consolidation Reference Manual

C2 Assets

C2-3 Worksheets

C2-3-110 Entry ACA worksheet

This worksheet can be used where an entity joins a consolidated group and the cost setting rules apply.

Step 1: Add up the cost of each membership interest • - section 705-65, Income Tax Assessment Act 1997 (ITAA 1997)

• A non-membership equity interest in the joining entity held by a member of the joined group is treated as a membership interest for the purposes of step 1 of the ACA.

Step 2: Add accounting liabilities and other things

Step 3: Add undistributed profits accrued to the group (section 705-90, ITAA 1997)

Step 3A: Adjust for prior CGT rollovers from a foreign-resident company or a company that became the head company (sections 705-93, 705-147 & 705-227, ITAA 1997)

Adjustment to result after step 3A: adjust for prior CGT rollovers (section 705-150, ITAA 1997)

Step 4: Subtract certain distributions and certain undistributed profits (section 705-95, ITAA 1997)

Step 5: Subtract unused losses that accrued to the group (section 705-100, ITAA 1997)

Step 6: Subtract for tax benefit from transferred losses not accrued to group (section 705-110, ITAA 1997)

Step 7: Subtract inherited deductions (section 705-2215, ITAA 1997)

Step 8: Entry ACA result (section 705-60, ITAA 1997)

History

Revision History

Section C2-3-110 first published 2 December 2002 and updated 28 May 2003.

Further revisions are described below.

Current at 6 May 2011