38.2-1426 - Application of earnings tests. - Virginia Statutes

§ 38.2-1426. Application of earnings tests.

If the issuing, assuming or guaranteeing business entity has not been inoperation for the entire period for which earnings are being applied pursuantto § 38.2-1424, the earnings tests shall be based upon pro forma statementsincorporating statements of any predecessor or constituent business entityfor that portion of the earnings tests period that the current businessentity was not in operation, if:

1. The current business entity was formed as a consolidation or a merger oftwo or more business entities, at least one of which was in operation at thebeginning of the period; or

2. The current business entity has acquired all of the assets of a businessentity or any division or other unit of a business entity that was inoperation at the beginning of the test period.

(1983, c. 457, § 38.1-217.29; 1986, c. 562; 1992, c. 588; 2000, c. 155; 2002,c. 147.)