Document ID: chunk:federal_register_of_legislation:C2025C00029:section:6:p7
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 6 (pt 7/22)
Character Range: 6958091–6960952

775‑105.

775‑305  Retranslation of gains and losses relating to arrangement to which foreign exchange retranslation election applies—forex realisation event 9

Forex realisation event 9
 (1) Forex realisation event 9 happens in relation to an *arrangement during an income year if:
 (a) you have made a *foreign exchange retranslation election that applies to the arrangement; and
 (b) you are required by:
 (i) *accounting standard AASB 121 (or another accounting standard prescribed for the purposes of paragraph 230‑265(1)(c)); or
 (ii) if that standard does not apply to the preparation of the financial report—a comparable accounting standard that applies to the preparation of the financial report under a *foreign law;
  to recognise, in the financial report referred to in paragraph 230‑255(2)(a) for that income year, amounts in profit or loss (if any) in relation to the arrangement that are attributable to changes in currency exchange rates.
The forex realisation event 9 is taken to have happened in the income year.

Forex realisation gain
 (2) You make a forex realisation gain if the standard referred to in paragraph (1)(b) requires you to recognise an amount of gain in profit or loss in relation to the *arrangement. That amount of the forex realisation gain is the amount the standard requires you to recognise.

Forex realisation loss
 (3) You make a forex realisation loss if the *accounting standard referred to in paragraph (1)(b) requires you to recognise an amount of loss in profit or loss in relation to the *arrangement. That amount of the forex realisation loss is the amount that the accounting standard requires you to recognise.

Section does not apply to amounts previously recognised in equity
 (4) Subsections (1), (2) and (3) do not apply to amounts that have previously been required by the standards referred to in paragraph 230‑255(2)(a) to be recognised in equity.

775‑310  When election ceases to apply to arrangement
 (1) For the purposes of this Division, a *foreign exchange retranslation election under subsection 230‑255(1) ceases to apply to an *arrangement from the start of an income year if the arrangement ceases to satisfy a requirement of paragraph 775‑295(1)(b) or (c) during that income year.
 (2) If the election ceases to apply to an *arrangement under subsection (1), the election cannot subsequently reapply to that arrangement (even if the requirements of paragraphs 775‑295(1)(b) and (c) are satisfied once more in relation to the arrangement).

775‑315  Balancing adjustment when election ceases to apply to arrangement
 (1) This section applies if:
 (a) you make a *foreign exchange retranslation election; and
 (b) the election ceases to have effect or ceases to apply to an *arrangement.
 (2) You are taken, for the purposes of this Division, to have:
 (a) disposed of the *arrangement for its