Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p22
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 22/32)
Character Range: 7246826–7249519

period (see subsection (5));
                (c) the last day of the measurement period if it is not a day mentioned in paragraph (b).

           Step 2. Add up those values.
           Step 3. Divide the result of step 2 by the number of measurement days. The result of this step is the average value.
Example: TW Corporation, a company that is an Australian entity, adopts a weekly interval for the purposes of this subsection. The measurement period is a period of 12 weeks. On the first day of that period it had $70 million of debt capital. Its debt capital was $80 million on the last day of each of the first 7 weeks, and $95 million on the last day of the remaining 5 weeks. Adding these amounts and dividing the result by 13 (the number of measurement days) gives the average value of its debt capital for that period, which is $85 million.

Regular intervals
 (5) The regular intervals for the measurement period are:
 (a) a period which consists of a fixed number of days or months (not less than one day and not more than 3 months) adopted by the entity and begins at the start of the first day of the measurement period; and
 (b) each successive period of the same duration that occurs during the measurement period.
Note: Examples of a regular interval therefore include a daily, weekly, fortnightly, monthly or quarterly interval.
 (6) The entity must use the same regular intervals when calculating the average values of different matters under subsection (4) for that period.

Special rules about values and valuation

820‑675  Amount to be expressed in Australian currency
 (1) For the purposes of this Division, an amount (including a value used in a calculation under this Division) is to be expressed in Australian currency.
 (2) An entity must comply with the *accounting standards in converting an amount into Australian currency.
 (3) Subsection (2) has effect whether the *accounting standard would otherwise apply to the entity or not.

820‑680  Valuation of assets, liabilities and equity capital
 (1) For the purposes of this Division, an entity must comply with the *accounting standards in determining what are its assets and liabilities and in calculating:
 (a) the value of its assets; and
 (b) the value of its liabilities (including its *debt capital); and
 (c) the value of its *equity capital.
Note: This requirement to comply with the accounting standards is modified in certain cases (see sections 820‑310 and 820‑682).
 (1A) In particular, for the purposes of this Division, the entity has an asset or liability at a particular time if, and only if, according to the *accounting standards, the asset or liability can or must be recognised at that time.