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 820-680   Valuation of assets, liabilities and equity capital  

820-680(1)  


For the purposes of this Division, an entity must comply with the *accounting standards in determining what are its assets and liabilities and in calculating:


(a) the value of its assets; and


(b) the value of its liabilities (including its *debt capital); and


(c) the value of its *equity capital.

Note:

This requirement to comply with the accounting standards is modified in certain cases (see sections 820-310 and 820-682 ).

820-680(1A)  


In particular, for the purposes of this Division, the entity has an asset or liability at a particular time if, and only if, according to the *accounting standards, the asset or liability can or must be recognised at that time.
Note:

This application of the accounting standards is modified in certain cases (see section 820-682 ).

820-680(2)  


If:


(a) an entity is required by an Australian law to prepare financial statements for a period in accordance with the *accounting standards; and


(b) a matter mentioned in subsection (1) is determined or calculated in accordance with the accounting standards for the purposes of the financial statements in relation to the period;

then, for the purposes of this Division, the matter is to be determined or calculated in relation to the period, or any part of the period, in the same way as it is determined or calculated in the financial statements.

820-680(2A)  


If:


(a) a period in relation to which a matter mentioned in subsection (1) is determined or calculated (the current period ) is not the same as a period in relation to which paragraphs (2)(a) and (b) are satisfied; and


(b) the current period overlaps with one or more periods in relation to which paragraphs (2)(a) and (b) are satisfied;

then, for the purposes of this Division, the matter is to be determined or calculated in relation to the current period in the same way as it is determined or calculated in the financial statements for the most recent of the overlapping periods.

820-680(2B)  
(Repealed by No 65 of 2019)

820-680(2C)  
(Repealed by No 65 of 2019)

820-680(2D)  
(Repealed by No 65 of 2019)

820-680(2E)  
(Repealed by No 65 of 2019)

Accounting standards need not otherwise apply to the entity

820-680(3)  
Subsection (1) has effect whether the *accounting standard would otherwise apply to the entity or not.


 

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