Document ID: chunk:federal_register_of_legislation:F2024C01248:reg:8:p2
Version: federal_register_of_legislation:F2024C01248
Segment Type: reg
Provision Reference: reg 8 (pt 2/2)
Character Range: 45183–47423

be determined, the value of the right on a particular day is the same as the market value of the share on that day.

83A‑315.04  Value of beneficial interests
  To avoid doubt, if an individual acquires the beneficial interest in a share or right, the value that is applicable for the purposes of this Division is the value of the share or right, not the value of the interest in the share or right.

83A‑315.05  Working out the value of a right to acquire the beneficial interest in a share
  For the purposes of paragraph 83A‑315.02(1)(b), work out the value, on the particular day, of the right to acquire the beneficial interest in the share, using the following method statement.

      Method statement
           Step 1: Apply the following formula. The result is the calculation percentage.

           Step 2: If the calculation percentage is less than 50%, the value of the right is nil.
            If the calculation percentage is equal to, or greater than, 50% but less than 110%, the value of the right is the value worked out under section 83A‑315.08.
            If the calculation percentage is equal to, or greater than, 110%, the value of the right is the value worked out under section 83A‑315.09.

83A‑315.08  Calculation percentages of 50% or more, and less than 110%
 (1) To work out the value of the right under this section, select the percentage (the calculation percentage) from an item in the following tables that corresponds to:
 (a) the period, in months, from the particular day (referred to in section 83A‑315.02) until the last day on which the right may be exercised (the exercise period); and
 (b) the calculation percentage;
and then multiply the amount, or lowest amount, that must be paid to exercise the right by the calculation percentage. The result is the value of the right.
Note: The following assumptions were used to work out the calculation percentages:
(a) a risk‑free interest rate of 4%;
(b) a dividend yield of 4%;
(c) volatility of 12%.

Calculation percentages 50 to 92.5
Item                                Exercise period (months)  Calculation percentages
50 to 60                            60 to 70                  70 to 75                 75 to 80  80 to 85  85 to 90  90 to 92.5