Document ID: chunk:federal_register_of_legislation:C2010C00648:clause:1_87
Version: federal_register_of_legislation:C2010C00648
Segment Type: clause
Provision Reference: sch 1 cl 87
Character Range: 71328–72513

87  Subsection 320‑200(2A)
Repeal the subsection, substitute:

 (2A) Without limiting subsection (2), where the asset transferred is a *depreciating asset, Division 40 has effect for the company as if:
 (a) in relation to the sale of the asset that is taken to have occurred under paragraph (2)(c):
 (i) the sale were a *balancing adjustment event; and
 (ii) the *termination value of the asset for that event were equal to the consideration for the sale under that paragraph; and
 (iii) the company had stopped *holding the asset at the time of the sale; and
 (b) in relation to the purchase of the asset that is taken to have occurred under paragraph (2)(d):
 (i) the company had only begun to hold the asset after the purchase; and
 (ii) the first element of the asset's *cost were equal to the consideration for the purchase under that paragraph; and
 (iii) the company had acquired the asset from an *associate of the company.

Note: This means that, amongst other things, as a result of the transfer:
  *   the asset's cost for the purposes of working out a deduction under Division 40 is reset; and
  *   the company's assessable income might be adjusted under section 40‑285.