Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p94
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 94/95)
Character Range: 5787150–5789782

value at the particular time.
 (5B) To avoid doubt, for the purposes of paragraph (5A)(b), determine the asset's *Division 230 starting value by reference to the relevant standards (as mentioned in section 230‑230, 230‑280 or 230‑420) that apply in relation to the *head company's financial report for the income year in which the entity becomes a subsidiary member of the group.

WIP amount assets
 (5C) If:
 (a) the asset's tax cost is set because an entity becomes a *subsidiary member of a *consolidated group at the particular time; and
 (b) the asset is a *WIP amount asset;
the expression means that section 25‑95 applies as if the *head company had paid a *work in progress amount for the income year in which the particular time occurs equal to the *tax cost setting amount of the asset.

Consumable stores
 (5D) If:
 (a) the asset's tax cost is set because an entity becomes a *subsidiary member of a *consolidated group at the particular time; and
 (b) the asset is consumable stores;
the expression means that, for the purposes of section 8‑1, the *head company of the group is taken to have incurred an outgoing at the particular time in acquiring the asset equal to the asset's *tax cost setting amount.

Other provisions
 (6) If any provision of this Act that is not mentioned above is to apply in relation to the asset by including an amount in assessable income, or by allowing an amount as a deduction, in a way that brings into account (directly or indirectly) any of the following amounts:
 (a) the cost of the asset;
 (b) outgoings incurred, or amounts paid, in respect of the asset;
 (c) expenditure in respect of the asset;
 (d) an amount of a similar kind in respect of the asset;
the expression means that the provision applies, for the purpose of determining the amount included in assessable income or the amount of the deduction, as if the cost, outgoing, expenditure or other amount had been incurred or paid to acquire the asset at the particular time for an amount equal to its *tax cost setting amount.
Note 2: For specific clarifications of the operation of this subsection in relation to bad debts, see Subdivision 716‑S.

701‑56  Application of subsection 701‑55(6)
 (1) Subsection (2) applies in relation to each asset that would be an asset of an entity at the time (the joining time) it becomes a *subsidiary member of a *consolidated group, assuming that subsection 701‑1(1) (the single entity rule) did not apply.
 (1A) Subsection (2) applies only to the extent necessary for the purposes of subsection 701‑55(6) to determine whether a provision of this Act is to apply in relation to each of