Document ID: chunk:federal_register_of_legislation:C2004A00897:clause:1_3:p17
Version: federal_register_of_legislation:C2004A00897
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 17/26)
Character Range: 144983–147704

million and $100 million respectively. Adding these amounts and dividing the result by 5 gives the average value of its assets for that year, which is $120 million.

Quarterly period

 (3) The quarterly periods of the income year are:
 (a) the period consisting of the first, second and third months of that year; and
 (b) each successive period of 3 months that occurs after that period during that year.

 (4) This is the method statement for the purposes of paragraph (1)(b):

      Method statement
           Step 1. Work out the value of the particular matter as at each of the following measurement days:

                (a) the first day of the measurement period;
                (b) the last day of each regular interval for the measurement 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