Document ID: chunk:federal_register_of_legislation:C2004A00897:clause:1_3:p16
Version: federal_register_of_legislation:C2004A00897
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 16/26)
Character Range: 142589–145223

by 3. The result of this step is the average value.
Example: RJ Corporation held assets valued at $115 million on the first day of an income year. It held assets valued at $105 million on the last day of the first half of that year, and $80 million on the last day of that year. Adding these amounts and dividing the result by 3 gives the average value of its assets for that year, which is $100 million.

Measurement days

 (3) The following are the first, second and third measurement days:
 (a) the first measurement day is the first day of the income year if it occurs during that period, otherwise it is the first day of that period;
 (b) the second measurement day is the last day of the first half of that year;
 (c) the third measurement day is the last day of that year if it occurs during that period, otherwise it is the last day of that period.

820‑645  The frequent measurement method

 (1) An entity that uses the frequent measurement method for a period (the measurement period) must calculate the average value of a matter for that period by applying:
 (a) the method statement in subsection (2) (generally based on quarterly periods); or
 (b) the method statement in subsection (4) (generally based on regular intervals).
This section does not prevent the entity from applying the method statement in subsection (2) for one matter and the method statement in subsection (4) for another matter in relation to that period.

 (2) This is the method statement for the purposes of paragraph (1)(a).

      Method statement
           Step 1. Work out the value of the particular matter as at each of the following measurement days:

                (a) the first day of the measurement period;
                (b) the last day of each quarterly period of that income year (see subsection (3)) that occurs during the measurement period (if any);
                (c) the last day of the measurement period if it is not a day covered by paragraph (b).

           Step 2. Add up those values.
           Step 3. Divide the result of step 2 by the number of measurement days. The result of this step is the average value.
Example: KJW Finance Corporation, a company that is an Australian entity, held assets valued at $130 million on the first day of an income year. On the last day of each quarterly period for that year it held assets valued at $140 million, $120 million, $110 million and $100 million respectively. Adding these amounts and dividing the result by 5 gives the average value of its assets for that year, which is $120 million.

Quarterly period

 (3) The quarterly periods of the income year are:
 (a)