Income Tax Act — I-3.3 18.21
Group ratio — definitions 18.21 (1) The following definitions apply in this section. acceptable accounting standards means International Financial Reporting Standards and the generally accepted accounting principles of (a) Canada; (b) Australia; (c) Brazil; (d) member states of the European Union; (e) member states of the European Economic Area; (f) Hong Kong (China); (g) Japan; (h) Mexico; (i) New Zealand; (j) the People’s Republic of China; (k) the Republic of India; (l) the Republic of Korea; (m) Singapore; (n) Switzerland; (o) the United Kingdom; and (p) the United States. ( principes comptables acceptables ) consolidated financial statements means financial statements prepared in accordance with a relevant acceptable accounting standard in which the assets, liabilities, income, expenses and cash flows of two or more entities are presented as those of a single economic entity and, for greater certainty, the financial statements include the notes to the financial statements. ( états financiers consolidés ) consolidated group means two or more entities, other than an equity-accounted entity but including an ultimate parent, (each such entity referred to in this section as a “member of the consolidated group”) in respect of which consolidated financial statements are required to be prepared for financial reporting purposes or would be so required if the entities were subject to International Financial Reporting Standards. ( groupe consolidé ) equity-accounted entity means an entity the net income or loss of which is included in the consolidated financial statements of a consolidated group under the equity method of accounting. ( entité comptabilisée à la valeur de consolidation ) equity interest means (a) a share of the capital stock of a corporation; (b) an interest as a beneficiary under a trust; (c) an interest as a member of a partnership; or (d) any similar interest in respect of any entity. ( participation au capital ) fair value amount means any amount reflected in the net income or net loss reported in the consolidated financial statements of a consolidated group for a relevant period where (a) the carrying value of any asset or liability of the consolidated group is measured using the fair value method of accounting; and (b) the amount reflects a change in the carrying value of the asset or liability during the relevant period and is included in either the description of C or H in the definition group adjusted net book income . ( montant de la juste valeur ) group adjusted net book income , of a consolidated group for a relevant period, means the amount determined by the formula A − B where A is the amount determined by the formula C + D + E + F + G where C is the amount, if any, of net income reported in the consolidated financial statements of the group for the period, D is the amount, if any, of income tax expense reported in those statements, E is the amount that would be the specified interest expense of the group for the period if the definition specified interest expense were read without reference to paragraph (b) of the description of A, F is the total of all amounts used in determining the amounts reported in those statements each of which is the amount of (a) a depreciation or amortization expense in respect of an asset, (b) a charge in respect of the impairment or write-off of an asset referred to in paragraph (a), (c) a loss on the disposal of an asset referred to in paragraph (a), (d) if an election is made under subsection (4) and the net fair value amount for the period is negative, the absolute value of the net fair value amount, and (e) an expense, charge, deduction or loss that is similar to any of those referred to in paragraphs (a) to (d), and G is the total of all amounts referred to in the description of D or F that are included in the determination of the net income or loss of an equity-accounted entity, to the extent of the consolidated group’s share of that net income or loss; and B is the a