Document ID: chunk:federal_register_of_legislation:F2024C01248:reg:8c
Version: federal_register_of_legislation:F2024C01248
Segment Type: reg
Provision Reference: reg 8C
Character Range: 183251–184508

8C  the value of an amount to which a contract (a spot contract) for the exchange of an amount in a foreign currency and a security relates if:                  the value of the amount to which the contract relates is to be translated into Australian currency at the exchange rate applicable at the tax recognition time (within the meaning of Division 775) referred to in the forex realisation event that happens on payment or receipt of that amount, unless the entity's usual business practice is not to translate the amount at the exchange rate applicable at the tax recognition time for the purpose of recording the transaction in the entity's accounting records.
    (a) the spot contract includes a requirement that consideration be provided within 2 business days after the contract is entered into; and                   Note: An entity's usual business practice may be to translate amounts into Australian currency at a different exchange rate because the entity recognises gains and losses under spot contracts in the entity's accounting records.
    (b) that requirement is satisfied

 (2) For the purposes of subsection 960‑50(7) of the Act, the table in subsection 960‑50(6) of the Act is modified by adding after item 11 the following items: