Document ID: chunk:federal_register_of_legislation:C2014C00749:clause:14_4
Version: federal_register_of_legislation:C2014C00749
Segment Type: clause
Provision Reference: sch 14 cl 4
Character Range: 194901–196907

4  At the end of section 165‑115E
Add:
 (2) The global method of working out whether the company has an unrealised net loss at the relevant time is as follows:

      Method statement
           Step 1. Work out the total market value of all *CGT assets that the company owned at the relevant time (including those it *acquired for less than $10,000), using a valuation method that would generally be regarded as appropriate in the circumstances.
           Step 2. Work out the total of the *cost bases of those *CGT assets at the relevant time.
                  Note: If a CGT asset that the company owned at the relevant time was also trading stock or a revenue asset at that time, see subsection (3) of this section.
           Step 3. If the step 2 amount exceeds the step 1 amount, the excess is the company's preliminary unrealised net loss at the relevant time.
           Step 4. Add up the company's preliminary unrealised net loss and any *capital loss, deduction or share of a deduction disregarded under section 170‑270 in relation to an asset referred to in paragraph 165‑115A(1A)(b). The total is the company's unrealised net loss at the relevant time.
 (3) If:
 (a) a *CGT asset that the company owned at the relevant time was also *trading stock or a *revenue asset at that time; and
 (b) the asset's *cost base at the relevant time is less than the amount that would be compared under section 165‑115F with the asset's market value in working out a notional revenue gain or notional revenue loss that the company has at the relevant time in respect of the asset;
then, for the purposes of step 2 of the method statement in subsection (2) of this section, the amount that would be so compared is to be taken into account instead of that cost base.
 (4) A choice to use the *global method must be made on or before:
 (a) the day on which the company lodges its income tax return for the income year in which the relevant time occurred; or
 (b) such later day as the Commissioner allows.