INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-10 - FINANCIAL TRANSACTIONS  

Division 230 - Taxation of financial arrangements  

Subdivision 230-C - Fair value method  

SECTION 230-210   Fair value election  

Election

230-210(1)  
You may make a fair value election under this section if you are eligible under subsection (2) to make the election for the income year in which you make the election. Eligibility to make fair value election for an income year

230-210(2)  
You are eligible to make a fair value election for an income year if:


(a) you prepare a financial report for that income year in accordance with:


(i) the *accounting principles; or

(ii) if the accounting principles do not apply to the preparation of the financial report - comparable standards for accounting made under a *foreign law that apply to the preparation of the financial report under a foreign law; and


(b) the financial report is audited in accordance with:


(i) the *auditing principles; or

(ii) if the auditing principles do not apply to the auditing of the financial report - comparable standards for auditing made under a foreign law.
Note:

Section 230-500 allows regulations to be made specifying particular foreign accounting and auditing standards as ones that are to be treated as comparable with Australian accounting and auditing principles for the purposes of this Division.

Election irrevocable

230-210(3)  
A *fair value election is irrevocable.

Note:

The election may cease to have effect, or cease to apply to a particular financial arrangement, under section 230-240 .


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