INCOME TAX ASSESSMENT ACT 1997

CHAPTER 4 - INTERNATIONAL ASPECTS OF INCOME TAX  

PART 4-5 - GENERAL  

Division 820 - Thin capitalisation rules  

Subdivision 820-G - Calculating the average values  

Special rules about values and valuation

SECTION 820-684   Valuation of intangible assets if no active market - modifying application of accounting standards  

Accounting standards prevent revaluation of some assets

820-684(1)  
Subsection (2) applies if complying with *accounting standard AASB 138 would prevent an entity from revaluing an intangible asset (within the meaning of that standard) because of the absence of an active market (within the meaning of that standard).

Note 1:

As a general rule, an entity must comply with the accounting standards when revaluing its assets for the purposes of this Division (see subsection 820-680(1) ).

Note 2:

This section does not apply to ADIs (see subsection (7)).

Entity may choose to revalue the asset

820-684(2)  
Despite subsection 820-680(1) , the entity may choose to revalue the asset for a period for the purposes of this Division (other than section 820-960 ).

Note:

Section 820-960 is about records for Australian permanent establishments.

820-684(3)  
A choice under subsection (2):


(a) must be in writing and may cover more than one asset; and


(b) must be made before the due day for lodging the entity ' s *income tax return for the income year that is, or that includes, the period; and


(c) subject to subsection (4), has effect, for the entity and the item, for the period and each later period.

820-684(4)  
The entity may, in writing, revoke a choice under subsection (2). The revocation has effect:


(a) for each period in the income year for which the entity is next required to lodge an *income tax return; and


(b) for each later period. Requirements for such revaluations

820-684(5)  
Subsections 820-680(2) and (2B) apply in relation to a revaluation under subsection (2) in a corresponding way to the way they apply in relation to a revaluation mentioned in paragraph 820-680(1)(a) .

Note 1:

Subsections 820-680(2) and (2B) set out requirements and other matters in relation to revaluations under subsection 820-680(1) .

Note 2:

The entity must also keep records in accordance with section 820-985 about the revaluation.

820-684(6)  
When revaluing an asset under subsection (2), the entity must, to the maximum extent possible, comply with the *accounting standards as if the revaluation were allowed by those standards. Choice not available to ADIs

820-684(7)  
An entity cannot make a choice under subsection (2) for a period if, for the period, the entity is an *outward investing entity (ADI) or an *inward investing entity (ADI).


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