Part 2Accounting concepts

Part 2 — Accounting concepts

13 Accounting on a group basis

(1) This section applies if: (a) a participating person for an eligible revenue period has the same ultimate Australian parent entity as one or more other participating persons for the period; and (b) the ultimate Australian parent entity’s annual consolidated financial statements include the sales revenue of the participating person, whether or not the statements include any revenue of entities other than the other participating persons mentioned in paragraph (a). (2) The participating person may make all of the calculations required by this determination in the participating person’s own right, identifying and accounting for the participating person’s own revenue and deductions, and those of any consolidated related parties and declared related parties of the participating person, in accordance with this determination. (3) As an alternative to subsection (2), 2 or more participating persons with the same ultimate Australian parent entity may make all of the calculations required by Parts 3 and 4 on a group basis, identifying and accounting for revenue and deductions as a whole.

Note: See section 38 for the calculation of net telecommunications sales revenue for participating persons within a group.

(4) In this determination, the use of the accounting arrangements in subsection (3) is accounting on a group basis.

14 Sales revenue

(1) In this determination, the sales revenue of a participating person, or of a consolidated related party or declared related party of a participating person, for an eligible revenue period (the eligible revenue period) is to be worked out using the sources mentioned in subsections (2) and (4) to identify the amount of revenue for the period (the relevant period) occurring during the eligible revenue period, in which the participating person: (a) is a carrier; or (b) is a participating carriage service provider; or (c) is a prescribed participating person. (2) For subsection (1), the sources are: (a) for an entity (other than a declared related party), if the entity’s sales revenue is included in the annual consolidated financial statements of an ultimate Australian parent entity: (i) if the most recent financial statements of the ultimate Australian parent entity for a period ending no later than the end of the eligible revenue period are required to be audited under the Corporations Act 2001 or any other law of the Commonwealth, a State or a Territory—those audited financial statements; and (ii) in any other case—the most recent financial statements of the ultimate Australian parent entity for a period ending no later than the end of the eligible revenue period; or (b) for an entity (other than a declared related party), if the entity’s sales revenue is not included in the annual consolidated financial statements of an ultimate Australian parent entity: (i) if the most recent financial statements of the participating person that include the participating person’s sales revenue for a period ending no later than the end of the eligible revenue period are required to be audited under the Corporations Act 2001 or any other law of the Commonwealth, a State or a Territory—those audited financial statements; and (ii) in any other case—the most recent financial statements of the participating person that include the participating person’s sales revenue for a period ending no later than the end of the eligible revenue period; or (c) for a declared related party: (i) if the most recent financial statements of the declared related party that include the declared related party’s sales revenue for a period ending no later than the end of the eligible revenue period are required to be audited under the Corporations Act 2001 or any other law of the Commonwealth, a State or a Territory—those audited financial statements; and (ii) in any other case—the most recent financial statements of the declared related party that include the declared related party’s sales revenue for a period ending no later than the end of the eligible revenue period. (3) For subsection (1), revenue is revenue for the relevant period if the following conditions apply: (a) the revenue is reported in: (i) the last financial statements for a period ending no later than the end of the eligible revenue period; or (ii) if the financial statements mentioned in subparagraph (i) cover a period that is shorter than the relevant period—those financial statements and the financial statements for as many other previous periods that, when added together, total a period that is at least the same length as the relevant period; (b) if the financial statements mentioned in subparagraph (a)(i) or (ii) cover a period that is longer than the relevant period or does not include the whole or part of the relevant period—the revenue was earned in a particular period that: (i) is the same length as the relevant period; and (ii) the ACMA decides is the most appropriate period, included in the period covered by the financial statements, for matching with the relevant period.