1

Start with the step 1 amount worked out under section   711 - 25, which is about the * terminating values of the leaving entity's assets just before the leaving time.

To ensure that the allocable cost amount includes the cost of the assets.

2

Add to the result of step 1 the step 2 amount worked out under section   711 - 35, which is about the value of deductions inherited by the leaving entity that are not reflected in the * terminating value of the leaving entity's assets just before the leaving time.

To ensure that the value of the deductions is reflected in the allocable cost amount.

3

Add to the result of step 2 the step 3 amount worked out under section   711 - 40, which is about liabilities owed by * members of the old group to the leaving entity at the leaving time.

To ensure that the liabilities, which are not recognised while the leaving entity is taken to be part of the * head company by subsection   701 - 1(1), are reflected in the allocable cost amount.

4

Subtract from the result of step 3 the step 4 amount worked out under section   711 - 45, which is about:

(a) the leaving entity's liabilities just before the leaving time; and

(b) * membership interests in the leaving entity that are not held by * members of the old group.

To ensure that the allocable cost amount is reduced to reflect the liabilities and the value of the membership interests.

5

If the amount remaining after step 4 is positive, it is the old group's allocable cost amount for the leaving entity. Otherwise the old group's allocable cost amount is nil.