Document ID: chunk:federal_register_of_legislation:C2013C00453:clause:1_6:p1
Version: federal_register_of_legislation:C2013C00453
Segment Type: clause
Provision Reference: sch 1 cl 6 (pt 1/3)
Character Range: 237428–240356

6  At the end of Division 775
Add:

Subdivision 775‑F—Retranslation under foreign exchange retranslation election under Subdivision 230‑D

Guide to Subdivision 775‑F

775‑290  What this Subdivision is about
      If you have made a foreign exchange retranslation election under Subdivision 230‑D:

                (a) a forex realisation gain or a forex realisation loss you make in relation to an arrangement that is not a Division 230 financial arrangement as a result of forex realisation event 1 to 5 or 8 is disregarded; and
                (b) forex realisation event 9 enables any gains or losses to be worked out on a retranslation basis.

Table of sections
775‑295 When this Subdivision applies
775‑300 Tax consequences of choosing retranslation for arrangement
775‑305 Retranslation of gains and losses relating to arrangement to which foreign exchange retranslation election applies—forex realisation event 9
775‑310 When election ceases to apply to arrangement
775‑315 Balancing adjustment when election ceases to apply to arrangement

775‑295  When this Subdivision applies
 (1) A *foreign exchange retranslation election applies to an *arrangement for the purposes of this Subdivision if:
 (a) you start to have the arrangement after the start of the income year in which the election is made; and
 (b) the arrangement is recognised in financial reports of a kind referred to in paragraph 230‑255(2)(a) that are audited, or required to be audited, as referred to in paragraph 230‑255(2)(b); and
 (c) the arrangement is one in relation to which you are required by:
 (i) *accounting standard AASB 121 (or another accounting standard prescribed for the purposes of paragraph 230‑265(1)(c)); or
 (ii) if that standard does not apply to the preparation of the financial report—a comparable accounting standard that applies to the preparation of the financial report under a *foreign law;
  to recognise, in the financial reports referred to in paragraph 230‑255(1)(a), amounts in profit or loss (if any) that are attributable to changes in currency exchange rates.
 (2) The *foreign exchange retranslation election does not apply to an *arrangement for the purposes of this Subdivision if:
 (a) the election is made by the *head company of a *consolidated group or *MEC group; and
 (b) the election specifies that the election is not to apply to *financial arrangements in relation to *life insurance business carried on by a member of the consolidated group or MEC group; and
 (c) the arrangement is one that relates to the life insurance business carried on by a member of the consolidated group or MEC group.
 (3) The *foreign exchange retranslation election does not apply to an *arrangement for the purposes of this Subdivision if the arrangement is associated with a business of a kind specified in regulations made for the purposes of subsection 230‑270(4).

775‑300  Tax consequences of choosing retranslation