Consolidation Reference Manual
You can still refer to the Consolidation reference manual for consolidation information that has not been impacted by changes in the legislation.
C2 Assets
C2-2 High-level worked example
Cost setting on entry
C2-2-110 The cost setting process on entry
Description
New tax costs must be obtained for the assets that a subsidiary brings into a consolidated group. The new tax costs are obtained by application of the cost setting rules (unless the head company opts to apply the transitional option of retaining existing tax values). This high-level example shows how the cost setting rules are applied through the steps shown in Figure 1 - from the calculation of the allocable cost amount (ACA) through to ascertaining the tax cost setting amount for each of the joining subsidiary's assets.
Some steps in the process are expanded on in worked examples included in this section of the Reference Manual.
Note
Ledger accounts, calculation of income tax and deferred tax liabilities are included in the background information at the back of this example. |
Commentary
Under consolidation, assets are brought into a consolidated group by a subsidiary member according to the cost setting rules. Among other things, this means that when an entity joins a consolidated group, the total value of the entity's assets for tax purposes is based on the cost of acquiring the entity - the tax values of the entity's assets are aligned with the tax values of the membership interests in the entity. → 'Treatment of assets', C2-1
Example
Facts
On 1 July 2000, Beta Pty Ltd (Beta) is incorporated with issued capital of $1,000 (1,000 ordinary shares at $1.00 per share). Beta immediately borrows further funds and acquired assets to commence business. Beta's financial position is as follows:
Land 1 | 1,200 | Capital | 1,000 |
Plant | 200 | Liabilities (loan) | 1,000 |
Cash | 300 | ||
Trading stock | 300 | ||
2,000 | 2,000 |
On 1 August 2000, Beta incorporates Gamma Pty Ltd (Gamma) with issued capital of $200 (200 ordinary shares at $1.00 per share). Gamma immediately invests its capital in two blocks of land held for agistment. Gamma's financial position is as follows:
Land 2 | 100 | Capital | 200 |
Land 3 | 100 | ||
200 | 200 |
On 1 July 2001, Alpha Pty Ltd (Alpha) acquires 60% of the shares in Beta for $765, i.e. 60% of $1,275 (the value of net assets).
Market value | ||
---|---|---|
Assets | ||
Land 1 | 1,300 | |
Plant | 180 | |
Shares in Gamma | 190 | |
Trading stock | 400 | |
Cash | 158 | 2,228 |
Liabilities | ||
Loan | 950 | |
Deferred tax liability | 3 | 953 |
Value of net assets | 1,275 |
The land and shares are not revalued in Beta's accounts. Beta's financial position is as follows:
Land 1 | 1,200 | Capital | 1,000 |
Plant (cost $200) | 180 | Profits | 185 |
Shares in Gamma | 200 | Liabilities | |
Trading stock | 400 | - loan | 950 |
Cash | 158 | - deferred tax liability | 3 |
2,138 | 2,138 |
During the income year ending 30 June 2001, Gamma sells Land 3 for $90, making a net capital loss of $10. The market value of Land 2 is unchanged. Gamma does not derive any income during the year.
Land 2 | 100 | Capital | 200 |
Cash | 90 | Losses | (10) |
190 | 190 |
On 30 June 2002, Alpha acquires the remaining 40% of shares in Beta for $796 (i.e. 40% of net asset values).
Market value | ||
---|---|---|
Assets | ||
Land 1 | 1,400 | |
Plant | 162 | |
Shares in Gamma | 197 | |
Trading stock | 350 | |
Cash | 481 | |
Goodwill | 304 | 2,894 |
Liabilities | ||
Loan | 900 | |
Deferred tax liability | 5 | 905 |
Value of net assets | 1,989 |
Beta's financial position is as follows:
Land 1 | 1,200 | Capital | 1,000 |
Plant | 162 | Profits (after tax $303) | 488 |
Shares in Gamma | 200 | Liabilities | |
Trading stock | 350 | - loan | 900 |
Cash | 481 | - deferred tax liability | 5 |
2,393 | 2,393 |
During the year ended 30 June 2002, Gamma makes an after tax profit of $7. Its financial position is as follows:
Land 2 | 100 | Capital | 200 |
Cash | 100 | Net profit | (3) |
- after tax profit | 7 | ||
- carry fwd loses | (10) | ||
Liabilities | |||
- income tax | 3 | ||
200 | 200 |
Choice to consolidate
Alpha chooses to form a consolidated group with effect from 1 July 2002, and notifies the ATO within the time and manner specified. The consolidated group is structured as follows:
Figure 2: Structure of consolidated group
Application of cost setting rules
When a consolidated group is formed, no changes are made in relation to the assets of the head company (except that intragroup membership interests and debts are ignored after formation). The cost setting rules establish the tax cost setting amounts for assets of subsidiaries.
Alpha must first apply the cost setting rules to Beta, before applying them to Gamma. → section 705-145, Income Tax Assessment Act 1997 (ITAA 1997)
Setting tax costs of Beta's assets
A: Calculate Beta's ACA
ACA step 1: Add up the cost of each membership interest
On 1 July 2001, Alpha acquires 60% of membership interests in Beta (Interest 1) for $765. On 1 July 2002, Interest 1 has a market value of $1,193, and Alpha acquires the remaining 40% of membership interests (Interest 2) for $796. There are no outstanding cost base adjustments for membership interests, such as for earlier value shifting or loss transfers. → subsection 705-65(3), ITAA 1997 and Explanatory Memorandum to New Business Tax System (Consolidation) Bill (No. 1) 2002, paragraph 5.60
Worksheet: Step 1 - Add up the cost of each membership interest
ACA step 2: Add liabilities of the joining entity at the joining time
The loan is shown as Liability 1 in the worksheet below. The deferred tax liability is shown as Liability 2. No reductions or adjustments are required. There are no employee shares, no non-membership equity interests issued by Beta and no debt interests that are regarded as equity for general accounting purposes.
Worksheet: Step 2 - Add liabilities etc.
ACA step 3: Add undistributed profits that accrued to the group
As Alpha elects to consolidate from 1 July 2002, in the first year of the two-year transitional period, and Beta is a wholly-owned subsidiary on that date, the transitional rule for ACA step 3 applies → former section 701-30, Income Tax (Transitional Provisions) Act 1997 . All undistributed profits accrued to the group are included.
To apply the rule, calculate how much of the undistributed profits accrued to the group, how much did not accrue to the group and the extent to which they could be franked.
Beta's profit for the 2000-01 year is $185, of which $178 could have been distributed in a frankable form. None accrues to the group, as Alpha does not acquire an interest in Beta until 1 July 2001. Beta's profit for the 2001-02 year is $303, of which $296 could have been distributed in a frankable form (as per franking account → table 25). Alpha owns 60% of Beta during the year, so the amount that accrues to Alpha is $182, of which $178 ($296 x 60% ) is in a frankable form. This $182 is included in step 3. The amount not accruing to the group is $121, of which $118 ($296 x 40%) is in a frankable form.
Worksheet: Step 3 - Add undistributed profits accrued to the group
ACA steps 3A, 4, 5, 6 and 7
There are no rollovers or distributions of profits, so step 3A and 4 do not apply. Steps 5 and 6 are not applicable because there are no realised and unrecouped tax losses or net capital losses at the joining time. Step 7 is not applicable as the head company will not be entitled to any deductions because of acts or transactions of the joining entity before the joining time.
Entry ACA Step 8
The ACA is $2,648.
B: Subtract value of retained cost base assets
First determine the tax cost setting amounts for Beta's retained cost base assets. → section 705-25, ITAA 1997
Beta's retained cost base assets are Cash and Trading Stock.
The tax cost setting amount for the Cash asset equals the amount of Australian currency involved, $481. The tax cost setting amount for the Trading Stock equals the amount of its terminating value (on the basis that Beta used the cost base method to value its stock), i.e. $350. These amounts for retained cost base assets is subtracted from the ACA ($2,648), leaving $1,817. → section 705-35, ITAA 1997, and sections 701A-1 and 701A-5, IT(TP)A 1997
C: Apportion remaining ACA over reset cost base assets
The remainder of the ACA ($1,817) is then apportioned among Beta's remaining assets other than excluded assets (i.e. its reset cost base assets) according to their market values.
The market value of Beta's shares in Gamma will need to be adjusted where there is an adjustment at steps 3 or 5 of the ACA calculation for Gamma. (In this example, Gamma has a step 3 adjustment - i.e. the profit adjustment amount.)
Beta's interest in the profit adjustment amount is worked out by dividing the market value of Beta's shares in Gamma ($197) by the market value of all shares in Gamma ($197), and then multiplying the result by the amount to be included in Gamma's ACA calculation under step 3 ($4). The result - i.e. ($197/$197) x $4 = $4 - is subtracted from the $197 market value of Beta's shares in Gamma, which gives a revised market value of $193. → section 705-160, ITAA 1997
The profit adjustment amount for Gamma (step 3 amount) is based on the extent to which the profits have accrued to the head company. Alpha owns 60% of Beta (held continuously), and Beta owns 100% of Gamma (held continuously), so the adjustment is 60% of Gamma's profits (60% x $7 = $4). Therefore, the market value of shares in Gamma should be reduced by $4.
Reset cost base assets | Terminating value (TV) | Market value (MV) | Apportionment of remainder | Assets held on revenue account - excess over greater of TV or MV | Tax cost setting amount for asset |
---|---|---|---|---|---|
Land 1 | 1,200 | 1,400 | 1,233 | 1,233 | |
Plant | 144 | 162 | 143 | 0 | 143 |
Shares in Gamma | 200 | 193 | 170 | 170 | |
Goodwill | 0 | 304 | 268 | 268 | |
Totals | 1,544 | 2,059 | 1,814 | 0 | 1,814 |
None of the tax cost setting amounts for assets held on revenue account exceed the greater of terminating value or market value of those assets, so no reduction in those tax cost setting amounts is necessary → section 705-40, ITAA 1997. Note that had it been necessary to reduce the tax cost setting amount for an asset held on revenue account, the amount of the reduction would have been allocated to the other assets in proportion to their market values.
→ 'Reduction for revenue-like assets (step C)', C2-4-530
Note also that part of the ACA is allocated to goodwill, notwithstanding that goodwill has not been shown in the accounts and has a nil terminating value.
D: Adjust for over-depreciated assets
Consider now whether a reduction (or further reduction) to the amount is required for over-depreciated assets. → former section 705-50, ITAA 1997
The over-depreciation provisions in the tax cost setting rules are modified for an entity that becomes a member of a consolidated group between 9 May 2007 and 30 June 2009. In this case, the head company need only look at five years of dividend history immediately before the joining time to determine whether an over-depreciation adjustment is required in relation to the joining entity's asset. From 1 July 2009, the over-depreciation adjustment in section 705-50 has been repealed, and it no longer applies to over-depreciated assets of entities that become subsidiary members of a consolidated group on or after that date. → Tax Laws Amendment (2010 Measures No. 1) Act 2010 (No. 56 of 2010)
However, as Beta joined the consolidated group on 1 July 2002, these modifications will not apply. Therefore, for the purposes of this example, the depreciation status of Beta's plant will be examined.
At the joining time the market value is $162 and the adjustable value $144. Therefore, the excess is $18. The cost is $200, an excess over the adjustable value of $56. Beta's plant is over-depreciated by $18 (the lesser of these two excesses).
Next, test to determine whether the tax cost setting amount needs to be reduced. → Worksheet: Over-depreciation reduction
The tax cost setting amount for an over-depreciated asset is reduced by the least of the over-depreciation amount (calculated above), the excess of the tax cost setting amount over its terminating value, and the tax deferral amount.
Worksheet: Over-depreciation reduction
Choice of retaining accelerated depreciation rate
The head company may choose under section 705-45 to reduce the tax cost setting amount of a depreciating asset (acquired before 21 September 1999) to equal its terminating value. Where a depreciating asset's tax cost setting amount does not exceed its terminating value, section 701-80 permits the head company to use the accelerated depreciation provisions. In this example the tax cost setting amount for the plant is less than its terminating value. Therefore, the head company can retain the existing accelerated depreciation rate.
→ sections 705-45 and 701-80, ITAA 1997
Choice of replacing tax cost setting amounts with terminating values
Under the transitional provisions, Alpha may choose to use existing tax values (known as 'terminating values') instead of the amounts calculated under the cost setting rules. This choice is available on a subsidiary-by-subsidiary basis. This is in contrast with the choice of retaining the accelerated depreciation rate, which is available on an asset-by-asset basis. → sections 701-1 and 701-5, IT(TP)A 1997
It is assumed Alpha does not choose to use the terminating values and uses the tax cost setting amounts calculated above.
Setting tax costs of Gamma's assets
A: Calculate Gamma's ACA
ACA step 1: Add up the cost of each membership interest
The tax cost setting amount for the shares Alpha indirectly holds in Gamma via Beta (calculated above as $170) is treated as the cost base and reduced cost base for step 1 of the ACA for Gamma.
Worksheet: Step 1 - Add up the cost of each membership interest
ACA step 2: ACA step 2: Add liabilities of the joining entity at the joining time
Gamma's only liability is for income tax. No reductions or adjustments are required. There are no employee shares, no non-membership equity interests issued by Gamma and no debt interests that are regarded as equity for general accounting purposes.
Worksheet: Step 2: Add liabilities etc.
ACA step 3: Add undistributed profits which accrued to the group
As Alpha elects to consolidate from 1 July 2002 (i.e. in the transitional period and before 1 July 2003), and Gamma is a wholly-owned subsidiary on that date, the transitional rule for ACA step 3 applies → former section 701-30, IT(TP)A 1997. All accrued undistributed profits are included.
Gamma has a profit of $7 in the latest year that it is entitled to distribute in a fully franked form. No losses are recouped. During that year, Alpha indirectly owns 60% of Gamma, so the amount that accrues to Alpha is $4.
Worksheet: Step 3: Add undistributed profits accrued to the group
ACA step 3A: Adjust for pre-joining time rollovers from a foreign resident company or the company that became the head company
Step 3A is not applicable as there have not been any rollovers.
ACA step 4: Subtract certain distributions and certain undistributed profits
Step 4 is not applicable. There are no actual distributions of profits and no undistributed unfrankable profits on hand at the joining time.
ACA step 5: Subtract unused tax losses that accrued to the head company
Step 5 is not applicable, as the unused net capital loss accrued before Alpha acquired an indirect interest in Gamma.
ACA step 6: Subtract for tax benefit from transferred tax losses not accrued to the group
For the purposes of the case study, it is assumed that Gamma satisfies the modified same business test for the purpose of transferring losses to the head company. Accordingly, $10 in net capital losses is transferred to the head company.
ACA step 7
There are no inherited deductions so no amount is subtracted at step 7.
ACA step 8
The entry ACA is $174.
Steps B, C and D
First determine the tax cost setting amount for the retained cost base assets. Cash is Gamma's only retained cost base asset. The amount is $100.
The remainder of the ACA, after deducting the sum of the tax cost setting amounts for retained cost base assets, is $74. This is allocated to Land 2, which is the only reset cost base asset. There are no excluded assets.
Intragroup transactions ignored
After consolidation, the group decides to sell 40% of its interest in Land 2, by having Beta sell 40% of its shares in Gamma. Before doing so, Gamma pays its income tax debt of $3, and then transfers its remaining cash of $97 to Beta. The latter transaction is ignored for income tax purposes.
Exit from a consolidated group
Beta sells 40% of its shares in Gamma for $40, reflecting the $100 market value of the underlying asset, Land 2. As Gamma is no longer a wholly-owned member of the group it is treated as having left the group. Alpha is taken to have acquired all of the membership interests in Gamma just before the leaving time, for an amount equal to the cost of the assets leaving the group with Gamma, reduced by Gamma's liabilities. Section 711-20 of the ITAA 1997 lists other adjustments that are relevant in more complex cases. See also the high-level worked example of the cost setting process on exit → C2-2-210 .
The only asset leaving with Gamma is Land 2, with a cost base of $74 (calculated above). There are no liabilities. Alpha is taken to have acquired the membership interests (200 shares) for a total of $74 (37 cents per share). The cost base of the 40% sold is $30 (80 shares x 37 cents, rounded), and Alpha has made a net capital gain of $10 ($40 less $30).
As a consequence of the exit history rule, the asset that Gamma takes with it from Alpha (the head company) will have the same cost for tax purposes as it did for Alpha at the time Gamma leaves the group - that is, the cost base of Land 2 will still be $74.
Background information
Beta Pty Ltd
30.6.01 | Plant depreciation | 20 | 30.6.01 | Trading account | 500 |
30.6.01 | Running expenses | 200 | |||
30.6.01 | Income tax expense | 92 | |||
30.6.01 | Deferred tax liability | 3 | |||
Net profit | 185 | ||||
500 | 500 | ||||
30.6.02 | Plant depreciation | 18 | 30.6.02 | Trading account | 700 |
30.6.02 | Running expenses | 250 | |||
30.6.02 | Income tax expense | 127 | |||
30.6.02 | Deferred tax liability | 2 | |||
Net profit | 303 | ||||
700 | 700 |
30.6.01 | Cash | 92 | 30.6.01 | P & L | 92 |
92 | 92 | ||||
30.6.02 | Cash | 127 | 30.6.02 | P & L | 127 |
127 | 127 |
Assessable income | |||
---|---|---|---|
Sales | 800 | ||
Increase in trading stock | 400 | ||
1,200 | |||
Less: allowable deductions | |||
Purchases | 700 | ||
Running expenses | 200 | ||
Plant depreciation | 30 | 930 | |
Taxable income | 270 | ||
Depreciation plant: cost $200 x 15% = 30
(Adjustable value cfwd = $170) Income tax payable for 2000-01 is $92 ($270 x 34%) . |
Assessable income | ||
---|---|---|
Sales | 1,100 | |
1,100 | ||
Less: allowable deductions | ||
Purchases | 350 | |
Decrease in trading stock | 50 | |
Running expenses | 250 | |
Plant depreciation | 26 | 676 |
Taxable income | 424 | |
Depreciation plant: adjustable value $170 x 15% = 26
(Adjustable value cfwd = $144) Income tax payable for 2001-02 is $127 ($424 x 30%) . |
Debit $ | Credit $ | Balance | ||
---|---|---|---|---|
1 July 2000 | Opening balance | 0 | ||
30 June 2001 | Payment of tax for 2000-01
(tax 92 x 66/34) |
178 | 178 CR | |
30 June 2001 | Closing balance | 178 CR | ||
1 July 2001 | Opening balance | 178 CR | ||
1 July 2001 | Conversion of Class C A/C to new 30% tax rate | 317 | 317 CR | |
Cancelling existing balance | 178 | |||
Reinstating credit at new rate
(178 x 34/66 x 70/30) |
214 | 214 CR | ||
30 June 2002 | Payment of tax for 2001-02
(tax 127 x 70/30) |
296 | 510 CR | |
30 June 2002 | Closing balance (actual) | 510 CR |
30.6.01 | Balance cfwd | 3 | 30.6.01 | P & L | 3 |
3 | 3 | ||||
1.7.01 | Balance bfwd | 3 | |||
30.6.02 | Balance cfwd | 5 | 30.6.02 | P & L | 2 |
5 | 5 | ||||
1.7.02 | Balance bfwd | 5 |
Note: Deferred tax liability 2000-01. The temporary difference between the carrying value of plant ($180) and its tax base ($170) multiplied by the tax rate (34%) results in a deferred tax liability of $3.
Deferred tax liability 2001-02. The temporary difference between the carrying value of plant ($162) and its tax base ($144) multiplied by the tax rate (30%) results in a deferred tax liability of $5. The liability needs to be increased by $2.
For the sake of simplicity, changes in the market value of other assets have not been reflected in the accounts for the purposes of this worked example.
Gamma Pty Ltd
30.6.01 | Loss on sale of asset | 10 | 30.6.01 | Net loss for year | 10 |
10 | 10 | ||||
30.6.02 | Running costs | 10 | 30.6.02 | Agistment income | 20 |
30.6.02 | Income tax | 3 | |||
Net profit | 7 | ||||
20 | 20 |
Assessable income | ||
---|---|---|
Agistment income | 20 | |
20 | ||
Less: allowable deductions | ||
Running expenses | 10 | 10 |
Taxable income | 10 | |
Income tax payable for 2001-02 is $3 ($10 x 30%) |
References
Income Tax Assessment Act 1997 , section 701-80 ; as amended by:
- •
- New Business Tax System (Consolidation) Act (No. 1) 2002 (No. 68 of 2002), Schedule 1
- •
- New Business Tax System (Consolidation, Value Shifting, Demergers and Other Measures) Act 2002 (No. 90 of 2002), Schedule 2
Income Tax Assessment Act 1997 , sections 705-35 , 705-45 , 705-50 and 995-1 ; as amended by:
- •
- New Business Tax System (Consolidation) Act (No. 1) 2002 (No. 68 of 2002), Schedule 1
- •
- New Business Tax System (Consolidation, Value Shifting, Demergers and Other Measures) Act 2002 (No. 90 of 2002), Schedule 2
- •
- Tax Laws Amendment (2010 Measures No. 1) Act 2010 (No. 56 of 2010), Schedule 5, Part 6
Income Tax Assessment Act 1997 , section 705-145 ; as amended by New Business Tax System (Consolidation, Value Shifting, Demergers and Other Measures) Act 2002 (No. 90 of 2002), Schedule 3
Income Tax Assessment Act 1997 , section 705-160 ; as amended by New Business Tax System (Consolidation and Other Measures) Act 2003 (No. 16 of 2003)
Income Tax Assessment Act 1997 , section 711-20 ; as amended by:
- •
- New Business Tax System (Consolidation) Act (No. 1) 2002 (No. 68 of 2002), Schedule 1
- •
- New Business Tax System (Consolidation, Value Shifting, Demergers and Other Measures) Act 2002 (No. 90 of 2002), Schedule 2
Income Tax (Transitional Provisions) Act 1997 , former section 701-30 ; as amended by:
- •
- New Business Tax System (Consolidation, Value Shifting, Demergers and Other Measures) Act 2002 (No. 90 of 2002), Schedule 7
- •
- New Business Tax System (Consolidation and Other Measures) Act (No. 1) 2002 (No. 117 of 2002), Schedule 5
- •
- Tax Laws Amendment (2010 Measures No.1) Act 2010 (No.56 of 2010), Schedule 5, Part 15
Income Tax (Transitional Provisions) Act 1997 , sections 701A-1 & 701A-5 ; as amended by New Business Tax System (Consolidation and Other Measures) Act (No. 1) 2002 (No. 117 of 2002), Schedule 9
Income Tax (Transitional Provisions) Act 1997 , sections 701-1 and 701-5 ; as amended by New Business Tax System (Consolidation, Value Shifting, Demergers and Other Measures) Act 2002 (No. 90 of 2002), Schedule 7
Explanatory Memorandum to New Business Tax System (Consolidation) Bill (No. 1) 2002, paragraph 5
Explanatory Memorandum to New Business Tax System (Consolidation and Other Measures) Bill (No. 2) 2002, paragraphs 5.61 to 5.71
Income Tax (Transitional Provisions) Act 1997 , section 701-32 ; as inserted by Tax Laws Amendment (2004 Measures No. 6) Act 2005 (No. 23 of 2005), Schedule 1, Part 9
Income Tax Assessment Act 1997 , subsection 705-90(6) ; as substituted by Tax Laws Amendment (2004 Measures No. 7) Act 2005 (No. 41 of 2005), Schedule 6, Part 3
Explanatory Memorandum to Tax Laws Amendment (2004 Measures No. 6) Bill 2004, paragraphs 1.156 - 1.162
Explanatory Memorandum to Tax Laws Amendment (2004 Measures No. 7) Bill 2004, paragraphs 6.24 - 6.29
Income Tax Assessment Act 1997 , sections 705-60 , 705-93 , 705-147 , 705-227 and subsection 995-1(1) as amended by Tax Laws Amendment (2010 Measures No. 1) Act 2010 (No. 56 of 2010), Schedule 5, Part 5
Income Tax Assessment Act 1997 , subsection 705-70(1) ; as amended by Tax Laws Amendment (2010 Measures No. 1) Act 2010 (No. 56 of 2010), Schedule 5, Part 8
Income Tax Assessment Act 1997 , subsection 705-85(3) ; as amended by Tax Laws Amendment (2010 Measures No. 1) Act 2010 (No. 56 of 2010), Schedule 5, Part 20
Explanatory Memorandum to Tax Laws Amendment (2010 Measures No. 1) Bill 2010, Chapter 5
Tax Laws Amendment (Repeal of Inoperative Provisions) Act 2006 (No. 101 of 2006), which repealed:
- •
- section 701-30 of the Income Tax (Transitional Provisions) Act 1997 , and
- •
- sections 46 , 46A and 160ZK of the Income Tax Assessment Act 1936
History
Revision History
Section C2-2-110 first published (excluding drafts) 2 December 2002 and updated 28 May 2003.
Further revisions are described below.
Date | Amendment | Reason |
---|---|---|
14.7.04 | Note on recent and proposed changes to consolidation rules, p. 2. | Recent and proposed legislative amendments. |
26.10.05 | Changes to figure 1, worksheets for steps 2 and 3 and references, pp. 1, 7, 14, 15. | Legislative amendments. |
12.9.06 | Change to worksheet step 3 for Betta, p. 8. | Legislative amendment. |
15.11.06 | Updated references to inoperative provisions. | Legislative amendment. |
26.06.07 | Updated references to inoperative provisions. | Legislative amendment. |
6.5.11 | References to non-membership equity interests, figure 1.
Minor changes to reflect new wording regarding the recognition of liabilities. Removal of note on proposed changes to clarify both the valuation of liabilities and the accounting principles to be used, and to the cost setting rules to phase out over-depreciation deductions. Minor changes to reflect changed wording in former section 705-50. Changes made to reflect changes to the transitional concession for substituted accounting periods made to former subsection 701-30(1) of the IT(TP)A 1997. |
Legislative amendments. |
Current at 6 May 2011