The FIA has now added the procedure for the elimination qualifying system into the latest version of the 2016 Sporting Regulations.
After the basics had been agreed on by the F1 Commission and World Motor Sport Council the detailed rules were drawn up by Charlie Whiting. It means that there must now be no doubts within the FIA about FOM’s ability to have its timing software ready for Australia – although presumably in an emergency the stewards could be asked to approve the old system.
Article 33 confirm that the eliminated car will no longer be timed.
a) From 14.00 to 14.16 (Q1) all cars will be permitted on the track. Seven minutes after the start of the session the driver last in the classification will be eliminated and will no longer be timed, he must then return to the pit lane and may take no further part in the qualifying practice session. The same procedure will then apply after 8m30s, 10m0s,11m30s, 13m0s and 14m30s leaving sixteen cars eligible to continue. At the end of the session all drivers on the track may complete the lap they are on and, once these final laps have been completed, the driver last in the classification may take no further part in the qualifying practice session.
Lap times achieved by the fifteen remaining cars will then be deleted.
b) From 14.24 to 14.39 (Q2) the fifteen remaining cars will be permitted on the track. Six minutes after the start of the session the driver last in the classification will be eliminated and will no longer be timed, he must then return to the pit lane and may take no further part in the qualifying practice session. The same procedure will then apply after 7m30s, 9m0s, 10m30s, 12m0s and 13m30s leaving nine cars eligible to continue. At the end of the session all drivers on the track may complete the lap they are on and, once these final laps have been completed, the driver last in the classification may take no further part in the qualifying practice session.
Lap times achieved by the eight remaining cars will then be deleted.
c) From 14.46 to 15.00 (Q3) the eight remaining cars will be permitted on the track. Five minutes after the start of the session the driver last in the classification will be eliminated and will no longer be timed, he must then return to the pit lane and may take no further part in the qualifying practice session. The same procedure will then apply after 6m30s, 8m0s, 9m30s, 11m0s and 12m30s leaving two cars eligible to continue. At the end of the session any driver on the track may complete the lap he is on and, once any final lap has been completed, the overall classification will be established.
Adam Cooper's F1 Blog 
Other than being a logistics nightmare, let’s have at it. Sounds fun because everyone will be on the track – like we all want…
No, they’ll put in a banker lap, and park. There’s not even going to be enough room for everyone on the track at some events (Monaco, Hungary, Austria, Mexico, Brazil).
And instead of the last gasp hail mary laps we’ve seen recently that made Qualifying actually interesting, we have exactly *TWO* cars on the track for the last 90+ seconds of Q3.
What happens when one makes it from Q1 into Q2, and in Q2 he is not able to get a laptime in? Will he have no laptime at all or will they go back to his Q1 laptime ? While after Q1 his Q1-laptime will be deleted.
Same for Q2 into Q3
It’s the same as previously you just start at the back of the Q2 group.
Actually, apart from the first few minutes at the start of each session, I think there will be fewer cars on track. And the top teams will only do one lap in Q1 and Q2 in those first few minutes.
I wouldn’t put it past Bernie to create said “emergency” if he feels like winning the pissing contest (and when doesn’t he feel like winning).