Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p47
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 47/55)
Character Range: 3913811–3916631

make a *foreign exchange retranslation election for an income year if:
 (a) you prepare a financial report for that income year in accordance with:
 (i) the *accounting principles; or
 (ii) if the accounting principles do not apply to the preparation of the financial report—comparable standards for accounting made under a *foreign law that apply to the preparation of the financial report under a foreign law; and
 (b) the financial report is audited in accordance with:
 (i) the *auditing principles; or
 (ii) if the auditing principles do not apply to the auditing of the financial report—comparable standards for auditing made under a foreign law.
Note: Section 230‑500 allows regulations to be made specifying particular foreign accounting and auditing standards as ones that are to be treated as comparable with Australian accounting and auditing principles for the purposes of this Division.

Election in relation to qualifying forex accounts
 (3) You may make a foreign exchange retranslation election under this subsection in relation to a *financial arrangement if:
 (a) the arrangement is a *qualifying forex account; and
 (b) you have not made a *foreign exchange retranslation election under subsection (1) that applies to the account.
You may make the election even if you start to have the arrangement before you make the election.

Financial arrangements to which election in relation to qualifying forex accounts applies
 (4) The election under subsection (3) applies to the *financial arrangement:
 (a) from the time when you start to have the arrangement if the election is made before you start to have the arrangement; or
 (b) from the start of the income year in which the election is made if you make the election after you start to have the arrangement.

Election irrevocable
 (5) A *foreign exchange retranslation election is irrevocable.
Note: The election may cease to apply under section 230‑285.

230‑260  Foreign exchange retranslation election where differing income and accounting years
 (1) This section applies if:
 (a) you prepare a financial report for a year (the first year); and
 (b) you prepare a financial report for the subsequent year (the second year); and
 (c) your income year starts in the first year and ends in the second year; and
 (d) both the financial report for the first year and the financial report for the second year are:
 (i) prepared in accordance with paragraph 230‑255(2)(a); and
 (ii) audited in accordance with paragraph 230‑255(2)(b); and
 (e) the auditor's reports are unqualified for both the financial report for the first year and the financial report for the second year.
 (2) Treat yourself as eligible to make an election for the income year under subsection 230‑255(2).
 (3) Work out the gain or loss you make from the arrangement for the income