Document ID: chunk:federal_register_of_legislation:C2025C00029:section:11:p1
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 11 (pt 1/3)
Character Range: 7659327–7662385

11                         an amount of a receipt or a payment, where none of the above items apply                                                                                                                                                                                                                                     the amount is to be translated to Australian currency at the exchange rate applicable at the time of the receipt or payment.

 (7) Subsection (6) has effect subject to any modifications made by the regulations.
 (7A) Despite subsections (6) and (7), an amount that is relevant for the purposes of quantifying, for the purposes of section 960‑565, the *annual global income of an entity as shown in *global financial statements for the entity is to be translated into Australian currency at the average exchange rate applicable for the period for which the statements are prepared.
 (7B) For the purposes of subsection (7A):
 (a) the entity must obtain:
 (i) all of the exchange rates that it will use to work out the average exchange rate; or
 (ii) an average exchange rate that has been worked out for the period referred to in that subsection;
  from one or more sources that are not *associates of the entity, and not the entity itself, or from one or more sources specified by the Commissioner in a notice to the entity; and
 (b) the entity must use the average exchange rate so worked out in translating into Australian currency any amount referred to in that subsection that is relevant to that period.
 (7C) A notice under paragraph (7B)(a) is not a legislative instrument.

Regulations about translation
 (8) An entity must comply with the regulations (if any) in translating an amount into Australian currency.
Note: For example, the regulations could require the use of a particular translation method and require consistency in the use of the translation method.
 (9) Regulations made for the purposes of subsection (8) may make provision in relation to a matter by applying, adopting or incorporating (with or without modifications) matter contained in any of the *accounting standards:
 (a) as in force or existing at a particular time; or
 (b) as in force or existing from time to time.
 (9A) Regulations made for the purposes of subsection (8) do not apply to translating an amount into Australian currency under subsection (7A), unless they provide otherwise.

Operation of certain provisions unaffected
 (10) This section does not affect the operation of the following provisions:
 (aa) section 220‑110 (*maximum franking credit);
 (a) section 775‑210 (notional loans under *facility agreements);
 (b) Subdivision 960‑D (functional currency);
 (c) subsection 974‑35(6) (valuation of financial benefits for the purposes of the debt/equity provisions).

960‑55  Application of translation rules
 (1) Section 960‑50 applies to:
 (a) a transaction, event or thing that:
 (i) involves an amount in a *foreign currency; and
 (ii) occurs on or after the applicable commencement date (within the meaning of Division 775);