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

Codes of Good Practice on Black Economic Empowerment

Code Series 100: Measurement of the Ownership Element of Broad-Based Black Economic Empowerment

Statement 102 : Recognition in the sale of assets

Annexe 102(A)
Purchase cart Previous page Return to chapter overview Next page

 

This formula determines the equivalency percentages, for the indicators in paragraph 2.1 and 2.2 of the Ownership Scorecard.

 

 

A = B x D

C

Where:

 

A  is the Equivalency Percentage for each of the indicators in paragraphs 2.1 and 2.2 of the Ownership Scorecard.

 

B is the value of the Qualifying Transaction to the Associated Enterprise determined using a Standard valuation method.

 

C is the value of the Seller determined using a Standard valuation method.

 

D is the Indicator Percentages of the Associated Enterprise.