Document ID: chunk:federal_register_of_legislation:C2025C00029:section:6:p14
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 6 (pt 14/20)
Character Range: 6254347–6257136

(iii) the joining entity's *accounting principles for tax cost setting; or
 (iv) if the amount of the liability cannot be determined in accordance with the joining entity's accounting principles for tax cost setting—comparable standards for accounting made under a *foreign law; or
 (b) otherwise—the liability's *Division 230 starting value at the joining time.

715‑378  Cost setting on joining—head company's right to receive or obligation to provide payment
 (1) This section applies in relation to an asset or a liability if:
 (a) an entity (the joining entity) becomes a subsidiary member of a consolidated group at a time (the joining time); and
 (b) the asset or liability becomes that of the head company of the group because subsection 701‑1(1) (the single entity rule) applies at the joining time; and
 (c) in the case of an asset—subsection 701‑55(5A) applies in relation to the asset at the joining time; and
 (d) in the case of a liability—subsection 715‑375(2) applies in relation to the liability at the joining time.
 (2) In the case of an asset, for the purposes of section 230‑60, assume that the *head company of the group acquired the asset at the joining time (as mentioned in subsection 701‑55(5A)) in return for the head company starting to have an obligation to provide the payment mentioned in that subsection.
 (3) In the case of a liability, for the purposes of section 230‑60, assume that the *head company of the group started to have the liability at the joining time (as mentioned in subsection 715‑375(2)) in return for the head company starting to have a right to receive the payment mentioned in that subsection.

715‑379  Cost setting on leaving—amount of intragroup liability that is Division 230 financial arrangement
 (1) Subsection (2) applies if:
 (a) an entity (the leaving entity) ceases to be a *subsidiary member of a *consolidated group at a time (the leaving time); and
 (b) a thing (the accounting liability) is, in accordance with *accounting standards, or statements of accounting concepts made by the Australian Accounting Standards Board:
 (i) a liability of the leaving entity at the leaving time that can or must be recognised in the entity's statement of financial position; or
 (ii) a liability of the *head company of the group at the leaving time that can or must be recognised in the head company's statement of financial position; and
 (c) because subsection 701‑1(1) (the single entity rule) ceases to apply to the leaving entity at the leaving time:
 (i) if subparagraph (b)(i) applies—the accounting liability becomes a liability of the leaving entity, and an asset (the corresponding asset) that consists of the liability becomes an asset of the head company; or
 (ii) if subparagraph (b)(ii) applies—the accounting liability