Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p19
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 19/19)
Character Range: 5880891–5882343

and liabilities that the joining entity has immediately before the joining time.
 (2) One or more assets, and one or more liabilities, that an entity has constitute a set of linked assets and liabilities of the entity if, and only if, in accordance with the entity's *accounting principles for tax cost setting:
 (a) the total of the one or more assets is to be set off against the total of the one or more liabilities in preparing statements of the entity's financial position; and
 (b) the net amount after the set‑off is to be recognised in those statements.
 (3) If the set consists only of one reset cost base asset for the purposes of section 705‑35, and one or more liabilities:
 (a) first, work out the total (the available amount) that, apart from this section and the accounting requirement referred to in subsection (2) of this section, would be taken into account under subsection 705‑70(1) (about step 2 in working out the allocable cost amount) for the one or more liabilities; and
 (b) next, work out the consequences under this table.

Treatment of linked assets and liabilities: single reset cost base asset case
Item                                                                           If the asset's *market value at the joining time:  This is the result for the asset:                                                                                                            This is the result for the one or more liabilities: