Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p7
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 7/10)
Character Range: 7123951–7126724

liabilities and on‑lent amount are $5 million, $2 million, $3 million and $35 million respectively. Deducting those amounts from the result of step 1 (through applying steps 1A to 4) leaves $75 million. Multiplying $75 million by 3/5 results in $45 million. Adding the average on‑lent amount of $35 million results in $80 million. Reducing the result of step 6 by the associate entity debt amount of $5 million results in $75 million. As the company does not have any associate entity excess amount, the adjusted on‑lent amount is therefore $75 million.

820‑217  Worldwide gearing debt amount—inward investment vehicle (financial)
  If the entity is an *inward investment vehicle (financial) for the income year, and is not also an *outward investing financial entity (non‑ADI) for all or any part of that year, the worldwide gearing debt amount is the result of applying the method statement in this section.

      Method statement
           Step 1. Divide the entity's *statement worldwide debt for the income year by the entity's *statement worldwide equity for that year.
           Step 2. Add 1 to the result of step 1.
           Step 3. Divide the result of step 1 by the result of step 2.
           Step 4. Multiply the result of step 3 in this method statement by the result of step 5 in the method statement in subsection 820‑200(2).
           Step 5. Add to the result of step 4 the average value, for that year, of the entity's *zero‑capital amount.
           Step 6. Add to the result of step 5 the average value, for that year, of the entity's *associate entity excess amount. The result of this step is the worldwide gearing debt amount.
Example: RGR Limited, a company that is an Australian entity, has a worldwide parent entity in France. RGR Limited has statement worldwide debt of $90 million and statement worldwide equity of $30 million. The result of applying step 1 is therefore 3. Dividing 3 by 4 (through applying steps 2 and 3) and multiplying the result by $100 million (which is the result of step 5 of the method statement in subsection 820‑200(2)) equals $75 million. The zero capital amount is $5 million. Adding that amount to $75 million results in $80 million. As the company does not have any associate entity excess amount, the worldwide gearing debt amount is therefore $80 million.

820‑219  Worldwide gearing debt amount—inward investor (financial)
  If the entity is an *inward investor (financial) for the income year, the worldwide gearing debt amount is the result of applying the method statement in this section.

      Method statement
           Step 1. Divide the entity's *statement worldwide debt for the income year by the entity's *statement worldwide equity for that year.
           Step 2. Add 1 to the result