For the purpose of section 11 of the Act, the asset value of a firm at any time is based on the gross value of the firm’s assets as recorded on the firm's balance sheet for the end of the immediately previous financial year prior to the merger, subject to sub-items (1) and (2).
| (a) |
the asset value equals the total assets less any amount shown on that balance sheet for depreciation or diminution of value; |
| (b) |
the combined assets are to include all assets on the balance sheets of the firms concerned, including any goodwill or intangible assets included in their balance sheets; |
| (c) |
no deduction may be taken for liabilities or encumbrances of the firm; |
| (d) |
the combined assets are to be calculated on the basis of the combined assets before giving effect to the merger and accordingly the combined assets do not include any goodwill or intangible assets that would arise as a result of the merger; |
| (e) |
the combined assets are not adjusted for any investments the acquiring firm might have in the transferred firm or amounts due by one firm to the other; and |
| (f) |
assets in the Republic includes all assets arising from activities in the Republic. |
| (2) |
If, between the date of the financial statements being used to calculate the asset value of a firm, and the date on which that calculation is being made, the firm has acquired the whole or any part of a business, any subsidiary company, an investment in any associated company or any interest in a joint venture (collectively "the recently acquired assets") not shown on those financial statements, or divested itself of the whole or any part of a business, any subsidiary company, an investment in any associated company or an interest in any joint venture (collectively "the recently divested assets") shown on those financial statements— |
| (a) |
The following items must be added to the calculation of the firm's asset value if these items should, in terms of IFRS, be included in the firm's asset value; |
| (i) |
The value of those recently acquired assets; and |
| (ii) |
Any asset received in exchange for those recently divested assets. |
| (b) |
The following items may be deducted in calculating the firm's asset value if these items were included in the firm's asset value: |
| (i) |
The value of those recently divested assets at the date of their divestiture; and |
| (ii) |
Any asset that was shown on the balance sheet and was subsequently used to acquire the recently acquired asset. |
[Section 6 substituted by Notice No. 1254, GG 41245, dated 10 November 2017]
Public Service Commission Act, 1997
