Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) Use the table in subsection (2) of this section to work out on a loss - focussed basis the amount (if any) by which the interest's * adjustable value is reduced.
(2) This involves comparing the old * market value, and the notional resulting market value, with the interest's * adjustable value (the old adjustable value ) immediately before the * IVS time.
Reduction under the attributable decrease method | |||
Item | If the old market value: | And the notional resulting market value: | This is the result: |
1 | is less than the old adjustable value | the * adjustable value is reduced to the notional resulting market value | |
2 | the * adjustable value is not reduced because of the * indirect value shift | ||
3 | is less than the old adjustable value | is less than the old adjustable value | the * adjustable value is reduced by the amount of the * disaggregated attributable decrease |
Note 1: Because of item 1, the indirect value shift cannot cause a loss to arise on disposal of the interest.
Note 2: Because of item 3 the loss already embedded in the
interest is preserved, but the indirect value shift does not increase it.