Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p27
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 27/30)
Character Range: 6211820–6214423

to 715‑185.

715‑100  First choice: adjustable values of leaving assets reduced to nil
  The first choice is to reduce the *adjustable value of each leaving asset to nil. The choice has effect accordingly, just before the leaving time. The *head company's *final RUNL is not reduced because of it.
Note: The consequences of the choice are worked out under section 715‑145.

715‑105  Second choice: head company's final RUNL applied in reducing adjustable values of leaving assets that are loss assets
 (1) The second choice is to reduce under this section the *adjustable value of each leaving asset (a loss asset) for which the *head company would have had a notional capital loss, or notional revenue loss, under section 165‑115F at the time (the test time) just before the leaving time if the test time had been a *changeover time for the head company. The choice has effect accordingly.
Note: The consequences of the choice are worked out under this section and section 715‑145.
 (2) If:
 (a) 2 or more entities cease to be *subsidiary members of the *consolidated group at the leaving time; and
 (b) 2 or more of them make the second choice;
the choices have effect in whichever order the *head company determines.
 (3) This section applies to each of the loss assets in order, according to their respective *adjustable values (apart from this section) at the test time: from largest to smallest. (If an asset has more than one such adjustable value, use the greater or greatest of them.)
 (4) At the test time, the *adjustable value of the loss asset is reduced to the asset's *market value at that time.
 (5) However, if the *head company's *final RUNL at the leaving time (as reduced by any previous reductions under this section) is less than the difference between:
 (a) the *adjustable value of the loss asset (apart from this section) at the test time; and
 (b) the asset's *market value at the test time;
the adjustable value is instead reduced at the test time by that final RUNL.
 (6) That *final RUNL is reduced by the amount of the reduction under subsection (4) or (5). If 2 or more such reductions are made for the same asset (because it has 2 or more different characters), that final RUNL is reduced by the greater or greatest of the reductions.

715‑110  Third choice: loss denial pool of leaving entity created
 (1) The third choice can be made only if every asset covered by paragraph 715‑95(1)(c) is a leaving asset. The choice is to have a loss denial pool of the leaving entity created at the leaving time, consisting of every leaving asset. (To avoid doubt, the choice can be