Investment Canada Regulations

3.1 (1) For the purposes of sections 14 and 14.1 of the Act, where only assets used in carrying on a Canadian business are acquired or where control only of an entity carrying on a Canadian business is acquired, the value of the assets shall be the aggregate of all assets acquired or of all assets of the entity, as shown in the audited financial statements for the entity carrying on the business for its fiscal year immediately preceding the implementation of the investment.

(2) For the purposes of sections 14 and 14.1 of the Act, where control of an entity carrying on a Canadian business and control of one or more other entities in Canada is acquired, directly or indirectly, the value of the assets shall be the aggregate of all assets shown in the audited financial statements consolidated for all the entities for their fiscal year immediately preceding the implementation of the investment.

(3) For the purposes of sections 14 and 14.1 of the Act, where control of a corporation incorporated elsewhere than in Canada that controls, directly or indirectly, an entity in Canada carrying on a Canadian business is acquired, directly or indirectly, the value of the assets of all entities, both inside and outside Canada, the control of which is acquired, directly or indirectly, shall be the aggregate of all assets shown in the audited financial statements consolidated for all the entities for their fiscal year immediately preceding the implementation of the investment.

(4) Where consolidated financial statements of entities referred to in subsection (2) or (3) are not available, the value of the assets for the purposes of sections 14 and 14.1 of the Act shall be the aggregate of the assets of all the entities as shown in the audited financial statements for each such entity for its fiscal year immediately preceding the implementation of the investment, excluding

• (a) any amount shown to represent an ownership interest in any other entity the control of which is acquired, directly or indirectly; and

• (b) any amount representing duplication arising from transactions between any entities the control of which is acquired, directly or indirectly.

(5) For the purposes of this section, where an individual or entity does not ordinarily prepare financial statements for audit or where financial statements for its fiscal year immediately preceding the implementation of the investment have not been audited, unaudited statements may be used.

(6) Where the first fiscal year of an entity has not been completed immediately preceding the implementation of the investment, a reference in this section to fiscal year shall mean the fiscal period that ends immediately preceding the implementation.

(7) The value of the assets calculated under this section shall be expressed in Canadian dollars.