Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)
Codes of Good Practice on Black Economic Empowerment
Code Series 100: Measurement of the Ownership Element of Broad-Based Black Economic Empowerment
Statement 102 : Recognition in the sale of assets
This formula determines the equivalency percentages, for the indicators in paragraph 2.1 and 2.2 of the Ownership Scorecard.
A = B x D
A is the Equivalency Percentage for each of the indicators in paragraphs 2.1 and 2.2 of the Ownership Scorecard.
B is the value of the Qualifying Transaction to the Associated Enterprise determined using a Standard valuation method.
C is the value of the Seller determined using a Standard valuation method.
D is the Indicator Percentages of the Associated Enterprise.