Document ID: chunk:federal_register_of_legislation:C2010C00583:clause:3_3
Version: federal_register_of_legislation:C2010C00583
Segment Type: clause
Provision Reference: sch 3 cl 3
Character Range: 10464–12475

3  After section 705‑57
Insert:

705‑58  Assets and liabilities not set off against each other

 (1) This Part applies separately to each asset and liability even if *accounting standards, or statements of accounting concepts made by the Australian Accounting Standards Board, require them to be set off against each other.

 (2) This section has effect subject to section 705‑59.

705‑59  Exception: treatment of linked assets and liabilities

 (1) This section applies to each set of *linked assets and liabilities that the joining entity has immediately before the joining time.

 (2) One or more assets, and one or more liabilities, that an entity has constitute a set of linked assets and liabilities of the entity if, and only if, in accordance with *accounting standards, or statements of accounting concepts made by the Australian Accounting Standards Board:
 (a) the total of the one or more assets is to be set off against the total of the one or more liabilities in preparing statements of the entity's financial position; and
 (b) the net amount after the set‑off is to be recognised in those statements.

 (3) If the set consists only of one reset cost base asset for the purposes of section 705‑35, and one or more liabilities:
 (a) first, work out the total (the available amount) that, apart from this section and the accounting requirement referred to in subsection (2) of this section, would be taken into account under subsection 705‑70(1) (about step 2 in working out the allocable cost amount) for the one or more liabilities; and
 (b) next, work out the consequences under this table.

Treatment of linked assets and liabilities: single reset cost base asset case
Item                                                                           If the asset's *market value at the joining time:  This is the result for the asset:                                                                                                            This is the result for the one or more liabilities: