Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p23
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 23/53)
Character Range: 2970323–2972928

disregarded under section 170‑270 in relation to an asset referred to in paragraph 165‑115A(1A)(b). The total is the company's unrealised net loss at the relevant time.
 (2) The global method of working out whether the company has an unrealised net loss at the relevant time is as follows:

      Method statement
           Step 1. Work out the total *market value of all *CGT assets that the company owned at the relevant time (including those it *acquired for less than $10,000), using a valuation method that would generally be regarded as appropriate in the circumstances.
           Step 2. Work out the total of the *cost bases of those *CGT assets at the relevant time.
                  Note: If a CGT asset that the company owned at the relevant time was also trading stock or a revenue asset at that time, see subsection (3) of this section.
           Step 3. If the step 2 amount exceeds the step 1 amount, the excess is the company's preliminary unrealised net loss at the relevant time.
           Step 4. Add up the company's preliminary unrealised net loss and any *capital loss, deduction or share of a deduction disregarded under section 170‑270 in relation to an asset referred to in paragraph 165‑115A(1A)(b). The total is the company's unrealised net loss at the relevant time.
 (3) If:
 (a) a *CGT asset that the company owned at the relevant time was also *trading stock or a *revenue asset at that time; and
 (b) the asset's *cost base at the relevant time is less than the amount that would be compared under section 165‑115F with the asset's *market value in working out a notional revenue gain or notional revenue loss that the company has at the relevant time in respect of the asset;
then, for the purposes of step 2 of the method statement in subsection (2) of this section, the amount that would be so compared is to be taken into account instead of that cost base.
 (4) A choice to use the *global method must be made on or before:
 (a) the day on which the company lodges its *income tax return for the income year in which the relevant time occurred; or
 (b) such later day as the Commissioner allows.

165‑115F  Notional gains and losses
 (1) This section applies for the purpose of calculating whether a company has at a particular time (the relevant time) a notional capital gain, a notional capital loss, a notional revenue gain or a notional revenue loss in respect of a *CGT asset that it owned at that time.
 (2) The calculation is to be made on the assumption that the company disposed of the asset at its *market value at the relevant time.
 (3) In relation to