If the entity is an * inward investor (general) for the income year, the worldwide gearing debt amount is the result of applying the method statement in this section.
Example: MLO Limited, a company that is not an Australian entity, has investments in Australia. MLO Limited has statement worldwide debt of $120 million and statement worldwide equity of $40 million.
The result of applying step 1 is therefore 3. Dividing 3 by 4 (through applying steps 2 and 3) and multiplying the result by $75 million (which is the result of step 4 of the method statement in section 820- 205) equals $56.25 million. As the average value of the company's associate entity excess amount is $4 million, the worldwide gearing debt amount is therefore $60.25 million.