Document ID: chunk:federal_register_of_legislation:C2010C00577:clause:1_34
Version: federal_register_of_legislation:C2010C00577
Segment Type: clause
Provision Reference: sch 1 cl 34
Character Range: 21324–23523

34  Subsection 820‑920(3) (method statement)
Repeal the method statement, substitute:

      Method statement
           Step 1. Work out the value, as at that particular time, of all the *associate entity equity of the relevant entity that is attributable to the *associate entity (disregarding the value of any *debt interest *issued by the associate entity that is held by the relevant entity at that time).
           Step 2. Work out the value, as at that time, of all the *equity capital of the *associate entity that is attributable to the relevant entity, then reduce it by so much of the value of all the *equity interests as satisfies both of the following:

                (a) the relevant entity holds the equity interests in the associate entity at that time;
                (b) the value of the equity interests is all or a part of the relevant entity's *controlled foreign entity equity at that time.

           Step 3. Reduce the result of step 1 by the result of step 2. However, if the result of step 2 is a negative amount, the result of step 2 is taken to be nil for the purpose of this step.
           Step 4. Multiply the result of step 3 by:

                (a) 20/21 if the *associate entity excess amount is applied for the purpose of working out the *total debt amount of the relevant entity for that period under subsection 820‑100(2), 820‑200(2) or 820‑210(2); or
                (b) 3/4 if the associate entity excess amount is applied for the purpose of working out the *adjusted on‑lent amount of the relevant entity for that period under subsection 820‑100(3), 820‑200(3) or 820‑210(3); or
                (c) 3/4 if the associate entity excess amount is applied for the purpose of working out the *safe harbour debt amount of the relevant entity for that period under section 820‑95, 820‑195 or 820‑205; or
                (d) the result of step 4 of the method statement in subsection (1) or (2) of section 820‑110 (as appropriate) if the associate entity excess amount is applied for the purpose of working out the *worldwide gearing debt amount of the relevant entity for that period.

            The result of this step is the premium excess amount.