Document ID: chunk:federal_register_of_legislation:F2024L01740:front:0:p46
Version: federal_register_of_legislation:F2024L01740
Segment Type: other
Provision Reference: 
Character Range: 115789–118555

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:
 (a) treat an amount recognised as a decrease to the equity of the Constituent Entity attributable to a distribution paid or payable in respect of Additional Tier One Capital or Restricted Tier One Capital issued by the Constituent Entity as an expense; and
 (b) treat an amount recognised as an increase to the equity of the Constituent Entity attributable to a distribution received or receivable in respect of Additional Tier One Capital or Restricted Tier One Capital held by the Constituent Entity as income.
 (2) An instrument issued by a Constituent Entity, pursuant to prudential regulatory requirements, that is convertible to equity or written down if a pre‑specified trigger event occurs, and that has other features which are designed to aid loss absorbency in the event of a financial crisis, is:
 (a) if the requirements are applicable to the banking sector—Additional Tier One Capital; or
 (b) if the requirements are applicable to the insurance sector—Restricted Tier One Capital.

3‑215  Adjustments as necessary for Chapters 6 and 7
  In computing a Constituent Entity's GloBE Income or Loss for a Fiscal Year:
 (a) adjust the Constituent Entity's Financial Accounting Net Income or Loss for the Fiscal Year so as to include an amount as required by a provision in Chapter 6 or 7; and
 (b) adjust the Constituent Entity's Financial Accounting Net Income or Loss for the Fiscal Year so as to exclude an amount as required by a provision in Chapter 6 or 7; and
 (c) adjust the Constituent Entity's Financial Accounting Net Income or Loss for the Fiscal Year so as to achieve a result as required by a provision in Chapter 6 or 7; and
 (d) adjust the Constituent Entity's Financial Accounting Net Income or Loss for the Fiscal Year by an amount as required by a provision in Chapter 6 or 7.

Part 3‑3—International Shipping Income exclusion

3‑220  Adjustment—certain shipping income
 (1) 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 exclude the following amounts:
 (a) the Constituent Entity's International Shipping Income for the Fiscal Year;
 (b) the Constituent Entity's Qualified Ancillary International Shipping Income for the Fiscal Year.
 (2) However, subsection (1) does not apply if, during the Fiscal Year:
 (a) a part of the Constituent Entity's International Shipping Income for the Fiscal Year arises from activities involving a ship; and
 (b) the strategic or commercial management of the ship is not effectively carried on from within the jurisdiction in which the