Document ID: chunk:federal_register_of_legislation:C2025C00029:section:6:p13
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 6 (pt 13/20)
Character Range: 6251665–6254620

asset at the joining time (within the meaning of section 705‑35); and
 (d) in working out the asset's *tax cost setting amount, the currency exchange rate of a particular *foreign currency is taken into account in determining the *market value of the asset.
 (2) For the purposes of Division 775, determine the extent of any *currency exchange rate effect after the joining time in relation to the asset, by reference to the currency exchange rate for the *foreign currency at the joining time.

Subdivision 715‑F—Interactions with Division 230 (financial arrangements)

Table of sections
715‑375 Cost setting on joining—amount of liability that is Division 230 financial arrangement
715‑378 Cost setting on joining—head company's right to receive or obligation to provide payment
715‑379 Cost setting on leaving—amount of intragroup liability that is Division 230 financial arrangement
715‑379A Cost setting on leaving—head company's or leaving entity's right to receive or obligation to provide payment
715‑380 Exit history rule not to affect certain matters related to Division 230 financial arrangements
715‑385 Exit history rule and elective methods applying to Division 230 financial arrangements

715‑375  Cost setting on joining—amount of liability that is Division 230 financial arrangement
 (1) Subsection (2) applies if:
 (a) an entity (the joining entity) becomes a *subsidiary member of a *consolidated group at a time (the joining 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, a liability of the joining entity at the joining time (disregarding subsection 701‑1(1) (the single entity rule)) that can or must be recognised in the entity's statement of financial position; and
 (c) the accounting liability is or is part of a *Division 230 financial arrangement of the head company at the joining time (because of subsection 701‑1(1) (the single entity rule)).
 (2) For the purposes of Division 230 and Schedule 1 to the Tax Laws Amendment (Taxation of Financial Arrangements) Act 2009, treat the *head company of the group as starting to have the accounting liability at the joining time for receiving a payment equal to:
 (a) if the liability is or is part of a *Division 230 financial arrangement of the head company at the joining time (because of subsection 701‑1(1) (the single entity rule)):
 (i) to which Subdivision 230‑B (accruals method or realisation method) applies; or
 (ii) to which Subdivision 230‑E (hedging financial arrangements method) applies;
  the amount of the liability, as determined in accordance with:
 (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