OrbitaxOn 1 November 2006, the Treasury released for consultation Discussion Paper on the Interaction of Thin Capitalization Provisions and International Financial Reporting Standards (IFRS). The Paper outlines the need for the current transitional regulations and proposes several options that may be implemented after the transitional regulations expire.
|Proposed Changes|Australia
At present, Australia's thin capitalization provisions apply to both inward and outward investors and rely on the recognition and valuation of assets, liabilities and equity under the accounting rules. The current thin capitalization provisions were introduced in 2001, when the applicable accounting standards were Australian Generally Accepted Accounting Principles (AGAAP). From 1 J…
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