Document ID: chunk:federal_register_of_legislation:C2013C00453:clause:1_6:p2
Version: federal_register_of_legislation:C2013C00453
Segment Type: clause
Provision Reference: sch 1 cl 6 (pt 2/3)
Character Range: 240092–242865

election does not apply to an *arrangement for the purposes of this Subdivision if the arrangement is associated with a business of a kind specified in regulations made for the purposes of subsection 230‑270(4).

775‑300  Tax consequences of choosing retranslation for arrangement
 (1) A *forex realisation gain or *forex realisation loss you make as a result of forex realisation event 1, 2, 3, 4, 5 or 8 is disregarded if:
 (a) the event happens in relation to an *arrangement that you hold; and
 (b) you have made a *foreign exchange retranslation election that applies to the arrangement; and
 (c) the election is in effect when the event happens.
 (2) If:
 (a) CGT event C1 or C2 happens in relation to an *arrangement that you hold at the time of the event; and
 (b) you have made a *foreign exchange retranslation election that applies to the arrangement; and
 (c) the election is in effect when the event happens;
disregard so much of any *capital gain or *capital loss you make as a result of the event as is attributable to a *currency exchange rate effect.
Note: For currency exchange rate effect, see section 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(1)(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 in profit 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 in 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