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  • Valuing assets, debt, other liabilities, equity and other matters

    The value of assets, debt capital, other liabilities, equity capital and other matters requiring a value is calculated by applying the relevant accounting standards. These standards also govern how amounts recorded in foreign currency are converted into Australian currency. The relevant accounting standards are the Australian equivalents to International Financial Reporting Standard (AIFRS) as adopted by the government on 1 January 2005. An entity must comply with the accounting standards when valuing a matter for thin capitalisation purposes, regardless of whether or not they are otherwise required to apply the standards.

    It is to be noted that certain modifications to the application of the accounting standards apply for non-ADI entities and ADI entities for the purposes of making calculations under the thin capitalisation regime.

    See also:

    The value the entity uses in its books of account for accounting purposes and the value it uses for thin capitalisation purposes do not necessarily need to be the same, provided that the value used for thin capitalisation purposes is established by complying with the accounting standards.

    Last modified: 09 Mar 2016QC 48206