Document ID: chunk:federal_register_of_legislation:C2025C00029:section:5:p6
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 5 (pt 6/13)
Character Range: 6100074–6102853

amount (the entry liability amount) of the liability that was taken into account in working out the original entry ACA, after any adjustments made under:
 (i) section 705‑70, 705‑75 or 705‑80; and
 (ii) subsection (9) of this section; and
 (d) if the liability is a provision for annual leave or long service leave, or a provision for a liability contingent on a future event:
 (i) in the case of a liability that was, in accordance with the *accounting principles that the entity would have used if it had prepared its financial statements just before the time it became a subsidiary member of the group, a current liability of the entity at that time—the leaving time occurs less than 1 year after that time; or
 (ii) otherwise—the leaving time occurs less than 4 years after that time.
 (9) Make these adjustments to the entry liability amount if, at a time when the leaving entity was a *subsidiary member of the old group, the *head company of the group paid an amount that reduced the liability:
 (a) reduce the entry liability amount by the amount of the reduction; and
 (b) if the payment gave rise to an amount being included in the assessable income of the head company—after making the reduction in paragraph (a), further reduce the entry liability amount by the product of:
 (i) the amount included in assessable income; and
 (ii) the *corporate tax rate; and
 (c) if the payment gave rise to a deduction for the head company—after making the reduction in paragraph (a), increase the entry liability amount by the product of:
 (i) the amount deducted; and
 (ii) the corporate tax rate.
 (10) The step 4 amount is altered by:
 (a) if the entry liability amount exceeds the exit liability amount—increasing the step 4 amount by the excess; or
 (b) if the entry liability amount falls short of the exit liability amount—decreasing the step 4 amount by the shortfall.

Exclusion of amounts for certain securitisation liabilities
 (11) An amount is not to be added for an accounting liability of the leaving entity if the accounting liability is covered under section 711‑46 (securitisation liabilities).

711‑46  Liability arising from transfer or assignment of securitised assets
  This section covers an accounting liability (the securitisation liability) if the following circumstances exist:
 (b) in working out the step 4 amount mentioned in subsection 711‑45(1) in relation to the leaving entity, an amount would be added under that subsection for the securitisation liability (disregarding subsection 711‑45(11));
 (c) a member of the old group transferred or equitably assigned one or more assets (the underlying securitised assets) to another entity before the leaving time;
 (d) the securitisation liability:
 (i) arose from the transfer or equitable assignment