Income Tax Assessment Act 1997

CHAPTER 6 - THE DICTIONARY  

PART 6-1 - CONCEPTS AND TOPICS  

Division 960 - General  

Subdivision 960-D - Functional currency  

Operative provisions

SECTION 960-85   Special rule about translation - events that happened before the current choice took effect  

Australian resident required to prepare financial reports under section 292 of the Corporations Act 2001

960-85(1)  
If:


(a) as the result of a choice (the current choice ) made by you under item 1 of the table in subsection 960-60(1) , subsection 960-80(1) requires that an amount be translated to the *applicable functional currency; and


(b) the amount is attributable to an event that happened, or a state of affairs that came into existence, at a time (the event time ) before the current choice took effect;

the table has effect:


Special rule about translation
Item In this case... this is the result...
1 at the event time, no previous choice made by you under item 1 of the table in subsection 960-60(1) was in effect the amount is to be translated first to Australian currency at the exchange rate applicable at the event time, and then to the *applicable functional currency at the exchange rate applicable when the current choice took effect.
2 at the event time, a previous choice made by you under item 1 of the table in subsection 960-60(1) was in effect the amount is to be translated first to the previous *applicable functional currency at the exchange rate applicable at the event time, and then to the current applicable functional currency at the exchange rate applicable when the current choice took effect.

Permanent establishment, offshore banking unit, CFC or transferor trust

960-85(2)  
If:


(a) as the result of a choice (the current choice ) made by you under item 2, 3, 4 or 5 of the table in subsection 960-60(1) , subsection 960-80(1) requires that an amount be translated to the *applicable functional currency; and


(b) the amount is attributable to an event that happened, or a state of affairs that came into existence, at a time (the event time ) before the current choice took effect;

the table has effect:


Special rule about translation
Item In this case... this is the result...
1 at the event time, no previous choice made by you under section 960-60 in relation to the establishment, unit, CFC or trust was in effect the amount is to be translated first to Australian currency at the exchange rate applicable at the event time, and then to the *applicable functional currency at the exchange rate applicable when the current choice took effect.
2 at the event time, a previous choice made by you under section 960-60 in relation to the establishment, unit, CFC or trust was in effect the amount is to be translated first to the previous *applicable functional currency at the exchange rate applicable at the event time, and then to the current applicable functional currency at the exchange rate applicable when the current choice took effect.


 

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