(1) Forex realisation event 8 happens if:
(a) you have made a choice for retranslation for a * qualifying forex account held by you; and
(b) that choice was in effect throughout a continuous period (the retranslation period ) consisting of:
(i) an income year; or
(ii) a particular part of an income year; and
(i) there is a positive retranslation amount for the account for the retranslation period (worked out under subsection (2)); or
(ii) there is a negative retranslation amount for the account for the retranslation period (worked out under subsection (3)).
(2) If the amount worked out using the formula in subsection (4) is a positive amount, that amount is a positive retranslation amount for the account for the retranslation period.
(3) If the amount worked out using the formula in subsection (4) is a negative amount, that amount is a negative retranslation amount for the account for the retranslation period.
(4) Work out an amount for the account for the retranslation period using the formula:
(5) For the purposes of subsection (4), a debit balance is to be expressed as a negative amount (for example, a debit balance of $50,000 is to be expressed as $50,000).
(6) You make a forex realisation gain if there is a positive retranslation amount for the account for the retranslation period. The amount of the forex realisation gain is the positive retranslation amount.
(7) You make a forex realisation loss if there is a negative retranslation amount for the account for the retranslation period. The amount of the forex realisation loss is the negative retranslation amount.
(8) For the purposes of subsection (7), reverse a negative amount (for example, a negative retranslation amount of $50,000 will become a forex realisation loss of $50,000).
Translation of foreign currency
(9) For the purposes of the application of section 960 - 50 to this section:
(a) if a retranslation period for an account did not begin immediately after the end of another retranslation period for the account--the opening balance of the account for the first - mentioned retranslation period is to be translated to Australian currency at the exchange rate applicable at the start of the first - mentioned retranslation period; and
(b) if a retranslation period for an account began immediately after the end of another retranslation period for the account--the opening balance of the account for the first - mentioned retranslation period is to be translated to Australian currency at the exchange rate applicable at the end of the other retranslation period; and
(c) the closing balance of an account for a retranslation period is to be translated to Australian currency at the exchange rate applicable at the end of the retranslation period; and
(d) each deposit is to be translated to Australian currency at the exchange rate applicable at the time of the deposit; and
(e) each withdrawal is to be translated to Australian currency at the exchange rate applicable at the time of the withdrawal.
(10) For the purposes of this section, a deposit includes any amount paid or transferred into the account.
(11) For the purposes of this section, a withdrawal includes any
amount paid, advanced, drawn or transferred out of the account.