CFM96470 - Interest restriction: group-EBITDA: relevant assets

TIOPA10/S417(5)

The amounts adjusted for as part of the depreciation and amortisation adjustment are those in respect of relevant assets. This is defined as:

• plant, property and equipment (PPE),
• investment property,
• intangible assets (including internally generated assets),
• goodwill (including internally generated goodwill),
• shares in a company, and
• interests in an entity which entitle the holder to a share of profits.

The references above to PPE, investment property, intangible assets and goodwill take the meaning they do for accounting purposes.

As the CIR calculations are based on a worldwide group’s consolidated financial statements, any gain or loss on a disposal will be accounted for as a disposal of the underlying asset and liabilities, so the reference to shares and similar interests in an entity as a relevant assets does not, as a practical matter, include shares in subsidiaries, but only shareholdings in a portfolio, associate or joint venture company disclosed in the consolidated financial statements.