When you're a reporting bank, you might need to split up your interest costs. This is called apportionment. The law says you have to do this in certain situations.
If you need to apportion your interest, you'll use a special calculation. This calculation is explained in another part of the law called section FE 7. When you do this calculation, you'll get a certain amount.
The amount you get from this calculation isn't just a number on paper. It actually counts as income for your bank. This means you need to include it when you're working out your income for the year.
The timing is important too. You include this amount as income in the same year as the measurement period. The measurement period is the time when you did the calculation.
This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.
View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1512869.
This section applies when a reporting bank is required under section FE 7 (Apportionment of interest by reporting bank) to apportion its interest expenditure.
The amount calculated under section FE 7(2) is treated as income of the reporting bank for the income year in which the measurement period falls.
