If you have acquired capital assets from, or have disposed of capital assets to, international related parties, write at Q the codes, taken from the table below, for the four principal methods you used for pricing those acquisitions or disposal. Write the codes in descending order of total dollar value, starting at the left-hand side.
If you used fewer than four methods leave the remaining spaces blank.
Pricing method |
Code |
Nil consideration |
1 |
Cost price |
2 |
Written-down value |
3 |
Discounted cash flow |
4 |
Director's valuation |
5 |
Independent valuation |
6 |
Quoted market price |
7 |
Other methods |
8 |
Cost price refers to the price the seller originally paid for the asset, including ancillary costs such as freight or handling.
Written-down value refers to a pricing method based on either the taxation 'adjustable value' or accounting residual value after depreciation has been allowed.
Discounted cashflow is a pricing method where the price of an asset is based on the discounted cash flow at the time of acquisition or disposal.
Director's valuation refers to a pricing method that is based on the directors' opinion of an asset's value, and not on any of the other methods listed in codes 1 to 8.
Independent valuation is a pricing method by which a suitably qualified person, acting at arm's length to both the buyer and seller, assesses the value of an asset.
Quoted market price refers to a price quoted on a public listed market, such as a public stock exchange, or commodities market.
Other methods means any other pricing method that is not mentioned in item 6.
The above pricing methods may not provide an arm's length price under all circumstances. The above examples are not an exhaustive list.