Section 159GQB — Income Tax Assessment Act 1936: Accrual amount

Formula (1) The accrual amount for an accrual period is worked out using the formula: Implicit interest rate (2) In the formula in subsection (1), Implicit interest rate means the rate of interest worked out under section 159GQC (for a fixed return security) or 159GQD (for a variable return security), properly adjusted to take account of the case where the accrual period is less than 6 months. Opening balance (3) In the formula in subsection (1), Opening balance means the amount worked out using the formula: Issue/transfer price + Previous accruals – Payments where: Issue/transfer price means the issue price or transfer price, as the case requires, of the security; and Previous accruals means: (a) if paragraph (b) does not apply—the sum, whether positive or negative, of all accrual amounts for previous accrual periods in the taxpayer’s maximum term; or (b) if the accrual period is the first in the taxpayer’s maximum term—nil; and Payments means all payments (other than of periodic interest) made or liable to be made under the security during all previous accrual periods in the taxpayer’s maximum term. Periodic interest etc. (4) In the formula in subsection (1), Periodic interest etc. means the sum of: (a) all periodic interest payments made or liable to be made under the security during the accrual period, properly adjusted in the case of any payment made other than at the end of the period; and (b) if any payments (other than of periodic interest) made or liable to be made under the security during the accrual period are made or liable to be made other than at its end—an amount to adjust properly for the making of the payments other than at the end of the period.