Step 5.1: Calculate the entity's statement worldwide debt for the income year

This amount is calculated using specified audited consolidated financial statements.

Insert this amount at Z on Worksheet 27: Non-ADI financial inward investment vehicle's step 5

Statement worldwide debt is the amount of liabilities for the period less the following amounts:

• provisions
• liabilities in relation to distributions to equity participants
• trade payables
• deferred tax liabilities
• liabilities relating to employee benefits
• current tax liabilities
• deferred revenue
• liabilities relating to insurance
• any other amount specified by legislative instrument.

Refer to subsection 820-933(1) of the ITAA 1997

Step 5.2: Calculate the entity's statement worldwide equity for the income year

This amount is calculated using specified audited consolidated financial statements.

Insert this amount at AA on Worksheet 27: Non-ADI financial inward investment vehicle's step 5

Statement worldwide equity is the amount of net assets for the period

Refer to Section 820-933(2)

Step 5.3: Divide the amount at Z by the amount at AA. This is the worldwide gearing ratio

Insert the result at BB on Worksheet 27: Non-ADI financial inward investment vehicle's step 5

Dividing the statement worldwide debt by the statement worldwide equity establishes the worldwide gearing ratio

Step 5.4: Add 1 (one) to the amount at BB (Step 5.3)

Insert the result at CC on Worksheet 27: Non-ADI financial inward investment vehicle's step 5

Step 5.4 and Step 5.5 convert the ratio to a fraction, which is later applied to the entity's net Australian assets

Step 5.5: Divide the amount at BB by the amount at CC

Insert the result at DD on Worksheet 27: Non-ADI financial inward investment vehicle's step 5

Step 5.6: Multiply the amount at DD by H

Insert the result at EE on Worksheet 27: Non-ADI financial inward investment vehicle's step 5

This applies the ratio, expressed as a fraction, to net Australian assets H represents the net Australian assets funded by debt and equity, as calculated at H in Worksheet 22: Non-ADI financial inward investment vehicle's step 1

Step 5.7: Add the average value of the entity’s zero capital amount ZC from worksheet 2 to the amount at EE

Insert the amount at FF on Worksheet 27: Non-ADI financial inward investment vehicle's step 5

Step 5.8: If the entity does not have any associate entities that are non-ADI outward investors or inward investors, insert 0 (zero) at GG on Worksheet 27: Non-ADI financial inward investment vehicle's step 5. Otherwise, calculate the average value of the entity's associate entity excess amount

Otherwise, calculate the average value of the entity's associate entity excess amount- Refer to the method statement in 820-920 of the ITAA 1997, insert the amount to GG on Worksheet 27: Non-ADI financial inward investment vehicle's step 5

This increases the worldwide gearing debt amount by the average associate entity excess amount

Note: If the entity does not have any associate entities that are non-ADI outward investors or non-ADI inward investors, the average associate entity excess amount is zero

Step 5.9: Calculate the entity's worldwide gearing debt amount by adding the amounts at FF and GG

The worldwide gearing debt amount represents the fraction of net Australian assets, increased by any associate entity excess amount

Step 5.1: Statement worldwide debt

(Z) __________

Step 5.2: Statement worldwide equity

(AA) __________

Step 5.3: Divide Z by  AA

(BB) __________

Step 5.4: BB + 1

(CC) __________

Step 5.5: Divide BB by  CC

(DD) __________

Step 5.6: Multiply DD  by amount at H on Worksheet 23: Non-ADI financial inward investment vehicle's step 2

(EE) __________

Step 5.7: Add EE by the amount at ZC on Worksheet 23: Non-ADI financial inward investment vehicle's step 2

(FF)

Step 5.8: Average associate entity excess amount

(GG) __________

Step 5.9: Worldwide gearing debt amount (FF + GG)

=      ___________