Document ID: chunk:federal_register_of_legislation:C2025C00029:section:6:p6
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 6 (pt 6/22)
Character Range: 6955609–6958373

made; and
 (b) the arrangement is recognised in financial reports of a kind referred to in paragraph 230‑255(2)(a) that are audited, or required to be audited, as referred to in paragraph 230‑255(2)(b); and
 (c) the arrangement is one in relation to which 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 reports referred to in paragraph 230‑255(2)(a), amounts in profit or loss (if any) that are attributable to changes in currency exchange rates.
 (2) The *foreign exchange retranslation election does not apply to an *arrangement for the purposes of this Subdivision if:
 (a) the election is made by the *head company of a *consolidated group or *MEC group; and
 (b) the election specifies that the election is not to apply to *financial arrangements in relation to *life insurance business carried on by a member of the consolidated group or MEC group; and
 (c) the arrangement is one that relates to the life insurance business carried on by a member of the consolidated group or MEC group.
 (3) The *foreign exchange retranslation 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: