Regulation 12

The FANIL of a constituent entity of an MNE group for a financial year must be adjusted so that it does not reflect any share acquisition adjustment.

In this regulation, “share acquisition adjustment” means a purchase accounting adjustment to the consolidated financial statements of an ultimate parent entity of an MNE group arising as a result of an entity becoming a constituent entity of the MNE group due to the acquisition of ownership interests in the entity by an existing constituent entity of the MNE group.

This regulation does not apply to a share acquisition adjustment resulting from an acquisition of ownership interests before 1 December 2021 if the constituent entities of the MNE group do not have sufficient records to identify the adjustment made with reasonable accuracy.