Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p36
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 36/53)
Character Range: 3001479–3004234

working out whether it has an adjusted unrealised loss at the current alteration time.

Amounts of losses may be reduced
 (7) The amounts referred to in paragraphs (5)(a) and (b) may be reduced under section 165‑115T.

165‑115T  Reduction of certain amounts included in company's overall loss at alteration time
 (1) In working out under section 165‑115R or 165‑115S whether a company was a *loss company at an alteration time (the current alteration time), if a loss (the realised loss) referred to in paragraph 165‑115R(3)(a), (b), (c) or (d) or 165‑115S(3)(a) or (b) that the company had at the current alteration time reflected an amount of a notional revenue loss, a trading stock decrease or a notional capital loss included in an adjusted unrealised loss, that the company had at a previous alteration time, the realised loss is taken to be reduced by that amount.
Note 1: For notional revenue loss and notional capital loss see section 165‑115V.
Note 2: For trading stock decrease see section 165‑115W.
 (2) Subsection (1) does not apply to an adjusted unrealised loss that the company had at a previous alteration time if the company has chosen to use the *global method of working out whether it has an adjusted unrealised loss at that previous time.

165‑115U  Adjusted unrealised loss
 (1) The question whether a company has an adjusted unrealised loss at an alteration time (the relevant alteration time) is worked out in this way (the individual asset method), unless the company chooses to work it out using the *global method (set out in subsection (1B)).

      Method statement
           Step 1. Work out under section 165‑115V or 165‑115W in respect of each *CGT asset that the company owned at the relevant alteration time any notional capital loss, notional revenue loss or trading stock decrease that the company has at that time in respect of the asset.
            To the extent that a notional capital loss or a notional revenue loss in respect of an asset at the relevant alteration time reflected an amount that was counted at an earlier alteration time, do not count it again at the relevant alteration time.
           Step 2. Add up the notional capital losses and the notional revenue losses that the company had at the relevant alteration time. The total is the company's nominal unrealised loss at that time.
           Step 3. Add up the trading stock decreases that the company had at the relevant alteration time. The total is the company's overall trading stock decrease at that time.
           Step 4. The sum of the company's nominal unrealised loss and overall trading stock decrease at the relevant time is the company's adjusted unrealised loss at that time.
Note: Certain alteration times are disregarded (see