Document ID: chunk:federal_register_of_legislation:F2022L01563:body:0:p5
Version: federal_register_of_legislation:F2022L01563
Segment Type: other
Provision Reference: 
Character Range: 11289–13725

corporate income tax (tax based on profits including current tax and deferred tax).
24.         An ADI must base the calculations in paragraphs 15 to 22 of this Prudential Standard on the most recent three years of its audited year-end financial statements. Where an ADI does not have audited financial statements from each of the previous three years (e.g. in the case of an ADI in the early years of its operation), it must obtain APRA's approval to use an alternative calculation methodology.
25.         In the event of a merger or acquisition, an ADI must use aggregated values when calculating the BI as set out in paragraphs 15 to 22 of this Prudential Standard, unless otherwise approved by APRA.
26.         Subject to APRA's approval, an ADI may exclude divested activities when calculating the BI as set out in paragraphs 15 to 22 of this Prudential Standard.
[1]  For the avoidance of doubt, this item includes gains from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations (in accordance with Australian Accounting Standards). However, this item does not include income from operating or finance leases, which are instead treated as interest income under paragraph16(a).
[2]  For the avoidance of doubt, this item includes operational loss events and losses from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations (refer to Australian Accounting Standards). However, this item does not include expenses from operating or finance leases, which are instead treated as interest expenses under paragraph16(b).
[3]  For the avoidance of doubt, this includes income received by the ADI for providing advice and services and as an outsourcer of financial services.
[4]  For the avoidance of doubt, this includes outsourcing fees paid by the ADI for the supply of financial services, but not outsourcing fees paid for the supply of non-financial services such as logistical, information technology or human resources services (which are instead included in the calculation of the other operating component in paragraph 19 of this Prudential Standard).
[5]  An ADI's trading book has the meaning given in Prudential Standard APS 116 Capital Adequacy: Market Risk.
[6]  An ADI's banking book has the meaning given in Prudential Standard APS 117 Capital Adequacy: Interest Rate Risk in the Banking Book (Advanced ADIs).