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Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)

Industry Charters

Financial Services  Charter

Code Series FS100: Measurement of the Ownership Element of Broad-Based Black Economic Empowerment

Statement 102: Recognition of the Sale of Assets

4. Measurement Principles


4.1 The calculation of the ownership points in terms of paragraph 2 of the Ownership Scorecard must be based on:


4.1.1 The value of the transaction;


4.1.2 The value of Equity Instruments held by Black Participants in the Associated Enterprise;


4.1.3 The carrying value of the Acquisition Debt of Black Participants in the Associated Enterprise; and


4.2 All calculations in terms of paragraph 4.1.1 to 4.1.3 must use a Standard valuation method.


4.3 Equivalency Percentages under this statement apply to all paragraphs of the Ownership scorecard except bonus points;


4.4 The Seller must include the Equivalency percentages in its own Ownership Scorecard as if those percentages arose from black ownership of Equity Instruments in the Seller. The Equivalency percentages for the indicators in paragraphs 2.1 and 2.2 of the Ownership Scorecard can be calculated in terms of Annexe 102(A).