Income Tax Assessment Act 1997
The question whether there is a trading stock decrease in relation to a company at an alteration time for a *CGT asset of the company that was an item of *trading stock at that time is worked out in this way. Method statement
Work out whether the item ' s *market value immediately before the alteration time was less than:
If the item ' s *market value immediately before the alteration time was less than:
as the case requires, the difference is the trading stock decrease for the item.
To the extent (if any) to which the difference reflects an amount counted at an earlier alteration time, do not count that amount again.
Certain alteration times are disregarded (see subsections 165-115K(2) and (4)).165-115W(1A)
Step 2 in the method statement in subsection (1) does not apply to an amount counted at an earlier alteration time if the company has chosen to use the *global method of working out whether it has an adjusted unrealised loss at that earlier time.
However, a company does not have a trading stock decrease at an alteration time in respect of an item of *trading stock that it *acquired for less than $10,000.