(1) Subject to the regulations made for the purposes of subsection (5), the value in present value terms of a * financial benefit to be provided or received in respect of an interest (the test interest ) is calculated under subsection (4).
(2) If you need to calculate the values in present value terms of a number of * financial benefits, the value of each financial benefit is to be calculated separately.
(3) The value of a * financial benefit is to be calculated assuming that all amounts to be paid by an entity in respect of the test interest are paid at the earliest time when the entity becomes liable to pay them.
(4) The value of a * financial benefit in present value terms is:
"adjusted benchmark rate of return" is 75% of the * benchmark rate of return on the test interest.
"n" is the number of years in the period starting on the day on which the test interest is issued and ending on the day on which the * financial benefit is to be provided. If the period includes a part of a year, that part is to be expressed as the fraction:
"year" means a period of 12 months.
(5) The regulations may provide for the method of calculating the value in present value terms of a * financial benefit.
(6) Without limiting subsection (5), the regulations may:
(a) provide for an entirely different method of calculating the present value of the * financial benefit; or
(b) specify the adjusted * benchmark rate of return; or
(c) provide for a different method of determining the adjusted benchmark rate of return; or
(d) specify rules for determining whether a * debt interest is an * ordinary debt interest.