INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-10 - FINANCIAL TRANSACTIONS  

Division 230 - Taxation of financial arrangements  

Subdivision 230-B - The accruals/realisation methods  

The accruals method

SECTION 230-172   Applying accruals method to loss resulting from impairment  

230-172(1)  
This section applies if:


(a) there is an impairment (within the meaning of the *accounting principles) of:


(i) a *financial arrangement; or

(ii) a financial asset or financial liability that forms part of a financial arrangement; and


(b) you make a loss from the financial arrangement as a result of the impairment; and


(c) the accruals method applies to the loss.

230-172(2)  
You cannot deduct a loss you make for an income year under section 230-15, to the extent that the loss results from the impairment (including as affected by any later reversal of the impairment loss (within the meaning of the *accounting principles) that resulted from the impairment).

230-172(3)  
Disregard subsection (2) for the purposes of paragraph (c) of step 1 of the method statement in subsection 230-445(1).


View surrounding sectionsView surrounding sectionsBack to top


This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.