Document ID: chunk:federal_register_of_legislation:F2024L01740:front:0:p28
Version: federal_register_of_legislation:F2024L01740
Segment Type: other
Provision Reference: 
Character Range: 71183–73961

equals or exceeds 50,000 Euros (or an equivalent in the Constituent Entity's accounting functional currency for the Fiscal Year).

3‑70  Adjustment—prior period errors and changes in accounting principles
 (1) Subsection (2) applies if there has been a change in the opening equity of a Constituent Entity at the start of a Fiscal Year.
 (2) In computing the Constituent Entity's GloBE Income or Loss for the Fiscal Year, adjust the Constituent Entity's Financial Accounting Net Income or Loss for the Fiscal Year so as to include the amount of that change to the extent the change is attributable to:
 (a) a correction of an error in the financial accounts for a previous Fiscal Year that affected the income or expenses includible in computing the Constituent Entity's GloBE Income or Loss for the previous Fiscal Year, except to the extent the correction resulted in a material decrease to a liability for Covered Taxes subject to Part 4‑6 (Post‑filing Adjustments and Tax Rate Changes); or
 (b) a change in accounting principle or policy that affects income or expenses includible in computing the Constituent Entity's GloBE Income or Loss for a Fiscal Year.

3‑75  Adjustment—accrued pension expense
  In computing a Constituent Entity's GloBE Income or Loss for a Fiscal Year, adjust the Constituent Entity's Financial Accounting Net Income or Loss for the Fiscal Year so as to include the amount computed under the following formula:
where:
  Accrued expense or income is:
 (a) the amount (expressed as a negative number) that is accrued, in the Constituent Entity's Financial Accounting Net Income or Loss for the Fiscal Year, as pension liability expense in respect of a Pension Fund; or
 (b) the amount that is accrued, in the Constituent Entity's Financial Accounting Net Income or Loss for the Fiscal Year, as income in respect of a Pension Fund.
  Pension contributions is the amount of pension contributions made by the Constituent Entity to the Pension Fund in the Fiscal Year.

3‑80  Adjustment—qualified debt release amount
 (1) Subsection (2) applies if an election under subsection (3) applies to:
 (a) a Constituent Entity of an MNE Group; and
 (b) a Fiscal Year.
 (2) In computing the Constituent Entity's GloBE Income or Loss for the Fiscal Year, adjust the Constituent Entity's Financial Accounting Net Income or Loss for the Fiscal Year so as to exclude each qualified debt release amount of the Constituent Entity for the Fiscal Year.

Election
 (3) A Filing Constituent Entity for an MNE Group may make an election for the MNE Group under this subsection that applies to a specified Constituent Entity of the MNE Group.
 (4) An election under subsection (3) is an Annual Election.

3‑85  Meaning of qualified debt release amount
 (1) The qualified debt