Document ID: chunk:federal_register_of_legislation:C2012C00706:clause:2_3
Version: federal_register_of_legislation:C2012C00706
Segment Type: clause
Provision Reference: sch 2 cl 3
Character Range: 60656–61765

3  Subsections 715‑375(2), (3) and (4)
Repeal the subsections, substitute:
 (2) For the purposes of Division 230 and Schedule 1 to the Tax Laws Amendment (Taxation of Financial Arrangements) Act 2009, treat the *head company of the group as starting to have the accounting liability at the joining time for receiving a payment equal to:
 (a) if the liability is or is part of a *Division 230 financial arrangement of the head company at the joining time (because of subsection 701‑1(1) (the single entity rule)):
 (i) to which Subdivision 230‑B (accruals method or realisation method) applies; or
 (ii) to which Subdivision 230‑E (hedging financial arrangements method) applies;
  the amount of the liability, as determined in accordance with:
 (iii) the joining entity's *accounting principles for tax cost setting; or
 (iv) if the amount of the liability cannot be determined in accordance with the joining entity's accounting principles for tax cost setting—comparable standards for accounting made under a *foreign law; or
 (b) otherwise—the liability's *Division 230 starting value at the joining time.