INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-10 - FINANCIAL TRANSACTIONS  

Division 230 - Taxation of financial arrangements  

Subdivision 230-J - Additional operation of Division  

SECTION 230-530   Additional operation of Division  

Foreign currency

230-530(1)  


This Division also applies to *foreign currency as if the currency were a right that constituted a *financial arrangement. Non-equity shares

230-530(2)  
This Division also applies to a *non-equity share in a company as if the share were a right that constituted a *financial arrangement. Commodities held by traders

230-530(3)  
This Division also applies to a commodity that you hold as if the commodity were a right that constituted a *financial arrangement if:


(a) you are an entity that trades or deals both in:


(i) that commodity; and

(ii) financial arrangements whose values change in response to changes in the price or value of that commodity; and


(b) you hold that commodity for the purposes of dealing in the commodity; and


(c) a *fair value election or an *election to rely on financial reports applies to financial arrangements that you start to have when you start to have the commodity; and


(d) the commodity is an asset that you are required (whether or not as a result of a choice you make) by:


(i) the *accounting principles; or

(ii) if the accounting principles do not apply to the preparation of the financial report - comparable standards for accounting that apply to the preparation of the financial report under a *foreign law;
to classify or designate, in your financial reports, as at fair value through profit or loss. Offsetting commodity contracts held by traders

230-530(4)  
This Division also applies to a contract to which you are a party as if the contract were a *financial arrangement if:


(a) you have a right to receive or an obligation to provide a commodity under the contract; and


(b) you have a practice of dealing in the commodity through the performance of offsetting contracts to receive and provide the commodity; and


(c) you do not have, as your sole or dominant purpose for entering into the contract, the purpose of receiving or delivering the commodity as part of your expected purchase, sale or usage requirements; and


(d) a *fair value election or an *election to rely on financial reports applies to financial arrangements that you start to have when you enter into the contract; and


(e) the contract is an asset or liability that you are required (whether or not as a result of a choice you make) by:


(i) the *accounting principles; or

(ii) if the accounting principles do not apply to the preparation of the financial report - comparable standards for accounting that apply to the preparation of the financial report under a *foreign law;
to classify or designate, in your financial reports, as at fair value through profit or loss.

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