Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) For the purposes of step 2 in the table in section 705‑60, the step 2 amount is worked out by adding up the amounts of each thing (an accounting liability ) that, in accordance with * accounting standards, or statements of accounting concepts made by the Australian Accounting Standards Board, is a liability of the joining entity at the joining time that can or must be recognised in the entity’s statement of financial position.
Note: Liabilities that the joining entity owes to members of the joined group would not be excluded even though the standards or statements require that they be eliminated in consolidated accounts of a parent entity and its subsidiaries.
Exclusion where transfer of accounting liability
(2) An amount is not to be added for an accounting liability that arises because of the joining entity’s ownership of an asset if, on * disposal of the asset, the accounting liability will transfer to the new owner.
Example: A liability to rehabilitate a mine site, where, under legislation or a licence, the liability will be transferred to the new owner on disposal of the mine.
Note: Adjustments reducing or increasing the amount under this section are made by sections 705‑75 to 705‑85.