Document ID: chunk:federal_register_of_legislation:C2010C00604:clause:7_1:p10
Version: federal_register_of_legislation:C2010C00604
Segment Type: clause
Provision Reference: sch 7 cl 1 (pt 10/13)
Character Range: 123762–126351

The consequences of the choice are worked out under section 715‑145.

715‑105  Second choice: head company's final RUNL applied in reducing adjustable values of leaving assets that are loss assets

 (1) The second choice is to reduce under this section the *adjustable value of each leaving asset (a loss asset) for which the *head company would have had a notional capital loss, or notional revenue loss, under section 165‑115F at the time (the test time) just before the leaving time if the test time had been a *changeover time for the head company. The choice has effect accordingly.

Note: The consequences of the choice are worked out under this section and section 715‑145.

 (2) If:
 (a) 2 or more entities cease to be *subsidiary members of the *consolidated group at the leaving time; and
 (b) 2 or more of them make the second choice;
the choices have effect in whichever order the *head company determines.

 (3) This section applies to each of the loss assets in order, according to their respective *adjustable values (apart from this section) at the test time: from largest to smallest. (If an asset has more than one such adjustable value, use the greater or greatest of them.)

 (4) At the test time, the *adjustable value of the loss asset is reduced to the asset's *market value at that time.

 (5) However, if the *head company's *final RUNL at the leaving time (as reduced by any previous reductions under this section) is less than the difference between:
 (a) the *adjustable value of the loss asset (apart from this section) at the test time; and
 (b) the asset's *market value at the test time;
the adjustable value is instead reduced at the test time by that final RUNL.

 (6) That *final RUNL is reduced by the amount of the reduction under subsection (4) or (5). If 2 or more such reductions are made for the same asset (because it has 2 or more different characters), that final RUNL is reduced by the greater or greatest of the reductions.

715‑110  Third choice: loss denial pool of leaving entity created

 (1) The third choice can be made only if every asset covered by paragraph 715‑95(1)(c) is a leaving asset. The choice is to have a loss denial pool of the leaving entity created at the leaving time, consisting of every leaving asset. (To avoid doubt, the choice can be made even if the leaving entity is not a company.)

 (2) A choice under this section has effect accordingly. The pool is distinct from any other loss denial pool of the leaving entity.

 (3) When the pool is created, its loss denial balance is equal to the *head company's *final