Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p5
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 5/8)
Character Range: 7093815–7096563

5 by the amount (the average on‑lent amount) which is the average value, for that year, of the entity's *on‑lent amount (other than *controlled foreign entity debt of the entity). If the result of this step is a negative amount, it is taken to be nil.
           Step 7. Multiply the result of step 6 by 3/5.
           Step 8. Add to the result of step 7 the average on‑lent amount.
           Step 9. Reduce the result of step 8 by the average value, for that year, of all the *associate entity debt of the entity.
           Step 10. Add to the result of step 9 the average value, for that year, of the entity's *associate entity excess amount. The result of this step is the adjusted on‑lent amount.
Example: GLM Limited, a company that is an Australian entity, has an average value of assets (other than assets attributable to its overseas permanent establishments) of $160 million.
 The average values of its relevant excluded equity interests, associate entity equity, controlled foreign entity debt, controlled foreign entity equity, non‑debt liabilities and on‑lent amount are $5 million, $5 million, $9 million, $6 million, $5 million and $35 million respectively. Deducting these amounts from the result of step 1 (through applying steps 1A to 6) leaves $95 million. Multiplying $95 million by 3/5 results in $57 million. Adding the average on‑lent amount of $35 million results in $92 million. Reducing the result of step 8 by the associate entity debt amount of $5 million equals $87 million. As the company does not have any associate entity excess amount, the adjusted on‑lent amount is therefore $87 million.

820‑110  Worldwide gearing debt amount—outward investor that is not also an inward investment vehicle

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

      Method statement
           Step 1. Divide the average value of all the entity's *worldwide debt for the income year by the average value of all the entity's *worldwide equity for that year.
           Step 3. Add 1 to the result of step 1.
           Step 4. Divide the result of step 1 by the result of step 3.
           Step 5. Multiply the result of step 4 in this method statement by the result of step 7 in the method statement in subsection 820‑100(2).
           Step 6. Add to the result of step 5 the average value, for that year, of the entity's *zero‑capital amount (other than any zero‑capital amount that is attributable