Document ID: chunk:federal_register_of_legislation:C2010C00690:clause:1_3:p1
Version: federal_register_of_legislation:C2010C00690
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 1/20)
Character Range: 96966–99768

3                  less than or equal to the asset's *reduced cost base                                     the asset's reduced cost base

Application of subsections 705‑65(2) and (4)

 (3) Subsections 705‑65(2) and (4) apply in relation to references in subsection (2) of this section to an asset's *cost base or *reduced cost base in a corresponding way to that in which they apply in relation to references in the table in subsection 705‑65(1) to a *membership interest's cost base or reduced cost base.

705‑80  Liabilities of the joining entity—reductions/increases for purposes of step 2 in working out allocable cost amount

Adjustment for unrealised gains and losses

 (1) If:
 (a) for income tax purposes, an accounting liability, or a change in the amount of an accounting liability, (other than one owed to a *member of the joined group) is taken into account at a later time than is the case in accordance with *accounting standards or statements of accounting concepts made by the Australian Accounting Standards Board; and

Example: Accrued employee leave entitlements or foreign exchange gains and losses.
 (b) assuming that, for income tax purposes the accounting liability or change were taken into account at the same time as is the case in accordance with those standards or statements, the joined group's allocable cost amount would be different;

Note: The difference would arise because subsection 705‑70(1) includes income tax liabilities and steps 3 and 5 of the table in section 705‑60 are affected by the time at which changes in liabilities are taken into account for income tax purposes.
then the amount to be added under subsection 705‑70(1) for the accounting liability is:
 (c) if the difference is an increase—increased by the amount of the increase; and
 (d) if the difference is a decrease—decreased by the amount of the decrease.

Use of reliable estimate

 (2) In working out for the purposes of subsection (1) an amount at a particular time or in respect of a particular period, use the most reliable basis for estimation that is available.

Example: The amount of a change in liability for employee leave entitlements over a period.

705‑85  Liabilities of the joining entity—increases for purposes of step 2 in working out allocable cost amount

Increase in step 2 amount for employee share interests

 (1) If any *membership interest (an employee share interest) in the joining entity needed to be disregarded under section 703‑35 in order for the joining entity to be a *wholly‑owned subsidiary of the *head company at the joining time, the step 2 amount worked out under section 705‑70 is increased by the sum of the *market values of those interests, reduced in each case by the reduction amount (if any) worked out under subsection (2) of this section.