Commonwealth Consolidated Acts

[Index] [Table] [Search] [Search this Act] [Notes] [Noteup] [Previous] [Next] [Download] [Help]

INCOME TAX ASSESSMENT ACT 1997 - SECT 230.495

Effect of change of accounting principles or standards

  (1)   This section applies if:

  (a)   one of these methods apply to take account of a gain or loss you make from a * financial arrangement:

  (i)   the fair value method provided for in Subdivision   230 - C; or

  (ii)   the foreign exchange retranslation method provided for in Subdivision   230 - D; or

  (iii)   the method of relying on your financial reports provided for in Subdivision   230 - F; and

  (b)   there is a change in, or in the application of, the relevant principles or standards (as mentioned in section   230 - 230 (fair value method), 230 - 280 (foreign exchange retranslation method) or 230 - 420 (method of relying on financial reports)) that apply in relation to the arrangement; and

  (c)   that change applies to a particular income year and later years; and

  (d)   as a result of the change, those principles or standards require you to recognise in your statement of financial position an amount (the equity amount ), in order to avoid the need to increase or decrease gains or losses recognised in profit or loss from the financial arrangement in respect of previous income years.

  (2)   If the equity amount is positive, include in your assessable income for the particular income year mentioned in paragraph   (1)(c) so much of it as relates to the * financial arrangement mentioned in paragraph   (1)(a).

  (3)   If the equity amount is negative, you are entitled to a deduction for the particular income year mentioned in paragraph   (1)(c) equal to so much of it as relates to the * financial arrangement mentioned in paragraph   (1)(a).


AustLII: Copyright Policy | Disclaimers | Privacy Policy | Feedback