Document ID: chunk:federal_register_of_legislation:C2010C00611:clause:4_6:p4
Version: federal_register_of_legislation:C2010C00611
Segment Type: clause
Provision Reference: sch 4 cl 6 (pt 4/5)
Character Range: 149154–152031

rate effect.

Note: For currency exchange rate effect, see section 775‑105.

775‑285  Retranslation of gains and losses relating to a qualifying forex account—forex realisation event 8

Forex realisation event 8

 (1) Forex realisation event 8 happens if:
 (a) you have made a choice for retranslation for a *qualifying forex account held by you; and
 (b) that choice was in effect throughout a continuous period (the retranslation period) consisting of:
 (i) an income year; or
 (ii) a particular part of an income year; and
 (c) either:
 (i) there is a positive retranslation amount for the account for the retranslation period (worked out under subsection (2)); or
 (ii) there is a negative retranslation amount for the account for the retranslation period (worked out under subsection (3)).

Retranslation amount

 (2) If the amount worked out using the formula in subsection (4) is a positive amount, that amount is a positive retranslation amount for the account for the retranslation period.

 (3) If the amount worked out using the formula in subsection (4) is a negative amount, that amount is a negative retranslation amount for the account for the retranslation period.

 (4) Work out an amount for the account for the retranslation period using the formula:

 (5) For the purposes of subsection (4), a debit balance is to be expressed as a negative amount (for example, a debit balance of $50,000 is to be expressed as$50,000).

Forex realisation gain

 (6) You make a forex realisation gain if there is a positive retranslation amount for the account for the retranslation period. The amount of the forex realisation gain is the positive retranslation amount.

Forex realisation loss

 (7) You make a forex realisation loss if there is a negative retranslation amount for the account for the retranslation period. The amount of the forex realisation loss is the negative retranslation amount.

 (8) For the purposes of subsection (7), reverse a negative amount (for example, a negative retranslation amount of$50,000 will become a forex realisation loss of $50,000).

Translation of foreign currency

 (9) For the purposes of the application of section 960‑50 to this section:
 (a) if a retranslation period for an account did not begin immediately after the end of another retranslation period for the account—the opening balance of the account for the first‑mentioned retranslation period is to be translated to Australian currency at the exchange rate applicable at the start of the first‑mentioned retranslation period; and
 (b) if a retranslation period for an account began immediately after the end of another retranslation period for the account—the opening balance of the account for the first‑mentioned retranslation period is to be translated to Australian currency at the exchange rate applicable at the end of the other retranslation period; and