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

Industry Charters

Financial Services  Charter

Code Series FS100: Measurement of the Ownership Element of Broad-Based Black Economic Empowerment

Statement 102: Recognition of the Sale of Assets

Annexe 102(A)
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This formula determines the Equivalency Percentages under paragraphs 2.1 to 2.5 of Table 2a of the Ownership Scorecard.

 

Where

 

A= B/C x D

 

A is the Equivalency Percentage

 

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