Document ID: chunk:federal_register_of_legislation:C2025C00029:section:5:p1
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 5 (pt 1/2)
Character Range: 7676619–7679390

5                         you make a choice under item 5 of the table in subsection 960‑60(1)  you make the choice within 90 days after the beginning of an income year or within 30 days after the commencement of this section.

960‑70  What is the applicable functional currency?

Australian resident required to prepare financial reports under section 292 of the Corporations Act 2001
 (1) If you make a choice under item 1 of the table in subsection 960‑60(1) with effect from the start of a particular income year, your applicable functional currency for:
 (a) that income year; and
 (b) each later income year for which the choice is in effect;
is the sole or predominant *foreign currency in which you kept your accounts at the time when you made the choice.

Permanent establishment, offshore banking unit or transferor trust
 (2) If you make a choice under item 2, 3 or 5 of the table in subsection 960‑60(1) in relation to a *permanent establishment, an *offshore banking unit or a *transferor trust with effect from the start of a particular income year, the applicable functional currency of the establishment, unit or trust for:
 (a) that income year; and
 (b) each later income year for which the choice is in effect;
is the sole or predominant *foreign currency in which the establishment, unit or trust kept its accounts at the time when you made the choice.

Controlled foreign company
 (3) If you make a choice under item 4 of the table in subsection 960‑60(1) in relation to a *controlled foreign company (CFC) with effect from the start of a particular *statutory accounting period, the applicable functional currency of the CFC for:
 (a) that statutory accounting period; and
 (b) each later statutory accounting period for which the choice is in effect;
is the sole or predominant *foreign currency in which the CFC kept its accounts at the time when you made the choice.
Note: The attributable income of a controlled foreign company is calculated separately for each attributable taxpayer—see section 381 of the Income Tax Assessment Act 1936.

Calculating capital gains and losses on indirect Australian real property interests
 (3A) If subsection 960‑61(2) applies, your applicable functional currency for the purposes of that subsection is the sole or predominant currency in which you keep your accounts at the time of the *CGT event.

Accounts
 (4) For the purposes of this section, accounts means:
 (a) ledgers; and
 (b) journals; and
 (c) statements of financial performance; and
 (d) profit and loss accounts; and
 (e) balance‑sheets; and
 (f) statements of financial position;
and includes statements, reports and notes attached to, or intended to be read with, any of the foregoing.

960‑75  What is a transferor trust?
  A transferor trust