Partial disposals


If the look-back approach is chosen for the petroleum interest, the petroleum interest has no starting base assets, and partial disposals do not apply.

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An entity reduces the starting base amount for a petroleum interest to the extent it disposes of any of its interest in any of the starting base assets relating to the petroleum interest during a specific period.

Any arrangement that has the effect of transferring part of the benefits or entitlements that an entity has in a starting base asset is treated as a disposal – for example, the grant of a right to use the asset. Similar treatment applies to depreciating or CGT assets on which interim expenditure was incurred.

The period during which partial disposals reduce the starting base amount depends on whether the entity has chosen the book value or market value approach for the petroleum interest.

Under the book value approach, the period starts on the date of the report from which the value is taken (or 2 May 2010 if the value is not recorded in the report) and ends on 30 June 2012.

Under the market value approach, the period starts on 2 May 2010 and ends on 30 June 2012.


Partial disposals may reduce the amount of interim expenditure an entity can claim.

For more information, see Effect of partial disposals.

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    Last modified: 14 May 2014QC 26152