8. Financial and other information

In this section:

• N – Functional currency translation rate
• O – Functional currency chosen
• A – Opening stock
• S – Purchases and other costs
• B – Closing stock
• C – Trade debtors
• D – All current assets
• E – Total assets
• F – Trade creditors
• G – All current liabilities
• H – Total liabilities
• J – Total debt
• K – Commercial debt forgiveness
• J – Franked dividends paid
• K – Unfranked dividends paid
• M – Franking account balance
• H – Excess franking offsets
• N – Loans to shareholders and their associates
• D – Total salary and wage expenses
• Q – Payments to associated persons
• G – Gross foreign income
• R – Net foreign income
• Attributed foreign income
• Taxation of financial arrangements (TOFA)

N – Functional currency translation rate

Complete N if the company keeps its accounts solely or predominantly in a foreign currency (its applicable functional currency) and has chosen to use that currency as its applicable functional currency to work out its taxable income or tax loss. If the company is using a functional currency, see the Guide to functional currency rules.

Do not complete N if the company has chosen to use a non-A$ functional currency only to calculate the net income attributable to the activities of an overseas permanent establishment, or the attributable income of a controlled foreign company, Offshore Banking Unit or Transferor Trust. For more information, see the Foreign income return form guide.

Write at N the exchange rate employed to translate the net taxable income figure from the applicable functional currency into A$. The translation rate is the amount by which the functional currency amount must be divided in order to reflect an equivalent amount of A$, that is, the number of non-A$ currency units that equal one A$, rounded to four significant figures.

If N is completed, also complete O Functional currency chosen.

O – Functional currency chosen

Complete O if N Functional currency translation rate has been completed.

Print at O the functional currency code that corresponds to the functional currency chosen by the company. See the Guide to functional currency rules - Currency codes for label 8O.

Show amounts calculated for tax purposes at A Opening stock, S Purchases and other costs, B Closing stock, J Total debt and K Commercial debt forgiveness.

A – Opening stock

Write at A the total value of all trading stock on hand at the beginning of the income year or accounting period for which the company tax return is being prepared. The amount shown by the company at A is the value for income tax purposes under section 70-40 of the ITAA 1997 or, for small business entities using the simplified trading stock rules, subsection 328-295(1) of the ITAA 1997. The opening value of an item of stock must equal its closing value in the previous income year.

If a taxpayer did not have any trading stock in the previous year, the value of trading stock at the start of the year is zero. This might occur in the case of a new business, in the first year a taxpayer has trading stock. It might also occur where the trading stock rules for small business entities cease to apply either because the entity is no longer eligible to be a small business entity, or because the entity chooses to account for changes to trading stock.

Include motor vehicle floor plan stock and work in progress of manufactured goods.

Do not include any amount that represents opening stock of a business that commenced operations during the income year. Include this amount at S Purchases and other costs item 8.

For consolidated and MEC groups, see the Consolidation reference manual for more information on trading stock held by entities that join the group.

S – Purchases and other costs

Write at S the cost of direct materials used for manufacture, sale or exchange in deriving the gross proceeds or earnings of the business. This amount includes freight inwards.

Former STS taxpayers

If the company is eligible and continuing to use the STS accounting method, only write at S Purchases and other costs the costs that the company has paid. (See Former STS taxpayers.)

For information on GST and input tax credits, see 6 Calculation of total profit or loss.

B – Closing stock

If the company is an eligible small business entity, see Small business entities. Otherwise, see All companies.

Small business entities

The company must account for changes in the value of its trading stock only if the difference between:

• the value of the company’s stock on hand at the start of the income year as shown at A Opening stock, and
• a reasonable estimate of the value of the company’s stock on hand at the end of the income year

is more than $5,000.

For more information relating to ‘reasonable estimate’, phone us on 13 28 66.

If the difference is not more than $5,000, the company can still choose to conduct a stocktake and account for changes in the value of trading stock.

If the difference between the value of the opening stock and a reasonable estimate of its closing stock is more than $5,000, the company must account for changes in the value of its trading stock. Go to step 2 if the difference is more than $5,000 or the company wishes to account for changes in the value. Otherwise, go to step 1.

Step 1

If the difference referred to above is $5,000 or less and the company chooses not to account for this difference, the closing stock value written at B Closing stock is the same value that the company wrote for opening stock at A item 8. Do not put the company’s reasonable estimate at B Closing stock.

Print in the CODE box at B Closing stock the code from table 5 that matches the code the company used to value closing stock in the previous year.

If this is the company’s first year in business, the value of its closing stock will be zero. Print code C in the CODE box.

Table 5: Valuation method codes

Code	Valuation method
C	Cost
M	Market selling value
R	Replacement value

Step 2

If the difference referred to above is more than $5,000 or the company chooses to account for the difference in trading stock, the closing stock values must be brought to account under section 70-35 of the ITAA 1997. See the instructions for All companies for calculating the value of trading stock.

Include in closing stock value at B Closing stock the value of all stock on hand, regardless of whether the company has paid for the stock.

All other companies

Write at B the total value of all trading stock on hand at the end of the income year or accounting period for which the company tax return is being prepared. The amount at B is the value calculated for income tax purposes under section 70-45 of the ITAA 1997.

If the company is registered or required to be registered for GST, the value of closing stock should not include an amount equal to the input tax credit that the company has claimed or is entitled to claim. Some items of trading stock, such as shares, are not subject to GST meaning there will be no input tax credits to consider.

Include floor plan stock and work in progress of manufactured goods.

Do not include any amount that represents closing stock of a business that ceased operations during the income year. Include this amount at Income, R Other gross income item 6.

Print in the CODE box the code from table 5 indicating the method used to value closing stock for income tax purposes. If more than one method is used, use the code applicable to the method representing the highest value.

Different methods of valuation may be used to value the same item of trading stock in different income years, and similar items may be valued using different methods in the same income year.

However, the opening value of an item in a particular income year must equal the closing value for that item in the previous income year. The company cannot reduce the value of stock on hand by creating reserves to offset future reduction of the value of stock, or any other factors. Keep records showing how each item was valued.

If incorrect trading stock information has been included on a tax return, advise us by submitting a full statement of the facts, accompanied by a reconciliation of the value of stock as returned for each income year with the values permissible under the law.

Companies engaged in manufacturing include the value of partly manufactured goods as part of their stock and materials on hand at the end of the income year.

For more information on the circumstances in which packaging items held by a manufacturer, wholesaler or retailer are ‘trading stock’ as defined in section 70-10 of the ITAA 1997, see:

• Taxation Ruling TR 98/7 Income tax: whether packaging items (ie, containers, labels, etc) held by a manufacturer, wholesaler or retailer are trading stock
• Taxation Ruling TR 98/8 Income tax: whether materials and spare parts held by a taxpayer supplying services are trading stock.

Consolidated or MEC groups

If the company was a subsidiary member of a consolidated or MEC group at the end of the income year and is completing a tax return because of any non-membership periods, write at B the value for trading stock on hand as at the end of the latest non-membership period. The amount at B is generally a tax-neutral value. This may not be the case if the company was a continuing majority-owned entity when it became a member of the group. For more information, see the Consolidation reference manual.

Trading stock election

A company may elect to value an item of trading stock below the lowest value of cost, market selling value or replacement value because of obsolescence or any other special circumstances. The value that is elected must be reasonable.

For guidelines on trading stock valuations where obsolescence or other special circumstances exist, see Taxation Ruling TR 93/23 Income tax: valuation of trading stock subject to obsolescence or other special circumstances.

If an election is made, print X in the Yes box at this item. Otherwise print X in the No box.

Include amounts taken from the company’s financial statements at C Trade debtors to H Total liabilities, and N Loans to shareholders and their associates as these amounts relate to accounting values.

C – Trade debtors

Write at C the total amounts owing to the company at year end for goods and services provided during the income year, that is, the gross amount of current trade debtors from the company’s accounts. Also include this amount at D All current assets item 8.

If the company was a subsidiary member of a consolidated or MEC group at the end of the income year and is completing a tax return because of any non-membership periods, write at C the relevant amount as at the end of the latest non-membership period.

D – All current assets

Write at D all current assets of the company, including cash on hand, short-term bills receivable, inventories and trade debtors as written at C Trade debtors item 8.

If the company was a subsidiary member of a consolidated or MEC group at the end of the income year and is completing a tax return because of any non-membership periods, write at D the relevant amount as at the end of the latest non-membership period.

E – Total assets

Write at E all assets of the company, including fixed, tangible and intangible assets and all current assets as written at D All current assets item 8.

For a consolidated or MEC group include all the assets of the group as disclosed in the financial accounts and not the amounts that are calculated by way of the allocable cost amount.

If the company was a subsidiary member of a consolidated or MEC group at the end of the income year and is completing a tax return because of any non-membership periods, write at E the relevant amount as at the end of the latest non-membership period.

F – Trade creditors

Write at F the total amounts owed by the company at year end for goods and services received during the income year, that is, current trade creditors. Also include this amount at G All current liabilities item 8.

If the company was a subsidiary member of a consolidated or MEC group at the end of the income year and is completing a tax return because of any non-membership periods, write at F the relevant amount as at the end of the latest non-membership period.

G – All current liabilities

Write at G the total obligations payable by the company within the coming year. Also include the amount written at F Trade creditors item 8.

If the company was a subsidiary member of a consolidated or MEC group at the end of the income year and is completing a tax return because of any non-membership periods, write at G the relevant amount as at the end of the latest non-membership period.

H – Total liabilities

Write at H all liabilities of the company, including other creditors and deferred liabilities such as loans secured by mortgage and long-term loans. Also include the amount shown at G All current liabilities item 8.

If the company was a subsidiary member of a consolidated or MEC group at the end of the income year and is completing a tax return because of any non-membership periods, write at H the relevant amount as at the end of the latest non-membership period.

J – Total debt

Write at J the average total debt of the company for the income year. Calculate the average total debt by adding the opening and closing balances of the total debt of the company for the income year, and dividing this sum by two.

The total debt of a company includes all financial instruments and arrangements that were used by the company to provide funds for their operations and investments. The instruments and arrangements that are shown at J include all loans, securities and instruments that give rise to deductible finance expenses, which include any of the following:

• interest, a payment in the nature of interest, or a payment in substitution for interest
• payments made for assignments of the right to interest
• a discount on a security for a finance arrangement
• an amount that is taken under a tax law to be an amount of interest for a lease, a hire-purchase arrangement or any other financial instrument specified by that law
• any application or processing fee for a finance arrangement
• any finance expense for a repurchase agreement or securities lending arrangement
• any other form of yield associated with a finance arrangement
• any such amount that, instead of being paid to a party to the arrangement, is dealt with in any way on behalf of that party.

Accordingly, there is no requirement that amounts included at J satisfy the definition of ‘debt interest’ for the purposes of Division 974 of the ITAA 1997 (the debt and equity rules).

For an overview of the debt and equity rules, see Guide to the debt and equity tests.

If the company was a subsidiary member of a consolidated or MEC group at the end of the income year and is completing a tax return because of any non-membership periods, write at J the relevant amount calculated as at the end of the latest non-membership period.

K – Commercial debt forgiveness

Write at K the net amount of commercial debts owed by the company that were forgiven during the income year, see Division 245 of the ITAA 1997. Broadly, a debt is a commercial debt if any part of the interest payable on the debt is, or would be, an allowable deduction. A debt is forgiven if the company’s obligation to pay the debt is released, waived or otherwise extinguished.

The net amount of commercial debts forgiven must be applied to reduce the company’s deductible revenue losses, net capital losses, certain undeducted revenue or capital expenditure and the cost base of certain CGT assets, in that order.

For more information, see Appendix 1.

Show at J to H and D to V amounts calculated for tax purposes.

J – Franked dividends paid

Write at J the amount of fully franked dividends paid or credited during the income year, including non-share dividends or deemed dividends that are fully franked, and the franked deemed dividend component of any off-market share buy-back under section 159GZZZP of the ITAA 1936. If a partly franked dividend has been paid during the income year, include the franked portion at J and the unfranked portion at K Unfranked dividends paid item 8.

Do not include dividends paid by one member to another within a consolidated or MEC group.

Record keeping

Keep a record of the following:

• dividends or non-share dividends paid
• recipients
• dates paid
• amounts paid.

K – Unfranked dividends paid

Write at K the amount of unfranked dividends paid or credited during the income year, including amounts deemed to be dividends by various sections of the ITAA 1936 and the ITAA 1997. Include unfranked non-share dividends, unfranked deemed dividends under Division 7A of Part III of the ITAA 1936, and the unfranked deemed dividend component of any off-market share buy-back under section 159GZZZP of the ITAA 1936.

Consolidated and MEC groups do not include:

• dividends paid by one member to another within a consolidated or MEC group
• a dividend paid under a demerger unless the head entity of the demerger group has elected under subsection 44(2) of the ITAA 1936 that it be treated as an assessable dividend.

Under Division 7A of Part III of the ITAA 1936, payments, loans and debts forgiven (unless they come within specified exclusions) by a private company to a shareholder or associates of a shareholder are treated as assessable dividends to the extent of the private company’s distributable surplus as defined in Division 7A.

The provision of a private company owned asset for the use by a shareholder (or associate of a shareholder) is to be treated as a payment. This includes provisions provided under a lease or licence arrangement.

A payment made in 2019–20 by a private company to a shareholder (or associate of a shareholder) can be converted into a loan before the end of the private company’s lodgment day that is defined to be the earlier of the due date for lodgment or the date of lodgment of the company’s income tax return for the year in which the loan is made.

Loans, and payments converted to loans in 2019–20, made by a private company to a shareholder (or associate of a shareholder) that are not repaid, may be put on a commercial footing before the private company’s lodgment day. This will prevent the loan from being treated as a deemed dividend.

See also:

• Division 7A – exercise of Commissioner's discretion under section 109rb

Record keeping

Keep a record of the following:

• dividends or non-share dividends paid
• recipients
• dates paid
• amounts paid.

M – Franking account balance

Write at M Franking account balance the balance of the franking account at the end of 2019–20. If there is a deficit balance in the franking account at the end of the income year, do not complete label M (that is, leave it blank), and the company must lodge a Franking account tax return 2020 and pay FDT by the last day of the month following the end of the income year. If the company is a late balancing company that has elected to have its FDT liability determined on 30 June 2020, it must lodge its franking account tax return on or before 31 July 2020.

If the company is a PDF and its venture capital sub-account is in deficit at the end of the PDF’s income year or immediately before it ceases to be a PDF, the company is liable to pay venture capital deficit tax. If the PDF has a liability to venture capital deficit tax, a Venture capital deficit tax return must be lodged.

Shareholder loans and other advances made by private companies that are deemed dividends are not frankable unless a section in the ITAA 1936 or ITAA 1997 provides that the dividend can be franked, for example, where the Commissioner exercises a limited power to permit the deemed dividend to be franked, or where the deemed dividend is paid in connection with a relationship breakdown.

Deemed dividends may also arise when a shareholder (or associate of such shareholder) of a private company that has (or will have by a certain time) an unpaid present entitlement from a trust estate receives a payment or loan or has a debt forgiven in their favour by the trustee of the trust estate. However, this will not result in a debit to the franking account of the private company with the unpaid present entitlement.

A company needs to determine whether its franking account needs adjustment, because these measures may affect imputation benefits available to shareholders, deny franking credits, or give rise to additional franking debits.

If you are a company that receives a R&D refundable tax offset, then only include franking credits arising from either payments of PAYG instalments or income tax after all deferred franking debits have been utilised. For more information on how a R&D tax offset affects your franking account, see the Franking account tax return and instructions 2020.

See also:

• Simplified imputation system

Consolidated and MEC groups

If the company was a subsidiary member of a consolidated or MEC group at the end of the income year and is completing a tax return because of any non-membership periods, write at M its franking account balance as at the end of the latest non-membership period if it is a surplus balance. If there is a deficit balance at the end of any non-membership period, the company must lodge a franking account tax return and pay the FDT.

H – Excess franking offsets

Write at H any excess franking offset calculated as follows:

Step 1: Calculate the amount of franking tax offsets that the company is entitled to. Franking tax offsets are available under Division 207 of the ITAA 1997 as a result of receiving a franked distribution, and Subdivision 210-H of the ITAA 1997 as a result of receiving a franked distribution franked with a venture capital credit. The amount of franking tax offset that a company is entitled to is equal to the share of franking credits included in distributions received from partnerships and trusts, the amount of franking credits included at J Franking credits item 7, and the amount of franking credits included at C Australian franking credits from a New Zealand company item 7.

Do not include any franking tax offsets that are subject to the refundable tax offset rules under Division 67 of the ITAA 1997, for example, franking tax offsets of a life insurance company are generally subject to the refundable tax offset rules to the extent that they relate to distributions paid on shares and other membership interests held on behalf of policy holders. Do not include these amounts. Generally, the franking tax offsets of other companies are not subject to the refundable tax offset rules.

Step 2: Calculate the amount of income tax that would be payable, taking into account all tax offsets (including its foreign income tax offset) with the exception of the following tax offsets:

• any franking tax offsets
• any tax offsets subject to the tax offset carry forward rules or the refundable tax offset rules
• any tax offset arising from an FDT liability.

Step 3: Calculate the amount of excess franking offsets. If the amount of franking tax offsets from step 1 exceeds the amount of hypothetical tax calculated at step 2, the excess is the amount of excess franking offset which should be written at H.

Excess franking offsets can affect the choice a company can make in how much of any prior year tax loss it can deduct this year. For more information, see Tax losses deducted.

If the company has excess franking offsets, it may convert the excess franking offsets into an amount of tax loss to carry forward to later income years. For more information, see Tax losses carried forward to later income years.

N – Loans to shareholders and their associates

Complete N only if:

• the company is a private company or a closely held corporate limited partnership
• the company or closely held corporate limited partnership has a loan to a shareholder or an associate of a shareholder that has a debit balance at the end of the income year, and
• the recipient of the loan was a natural person, partnership or trust.

Division 7A of Part III of the ITAA 1936 applies to closely held corporate limited partnerships. A closely held corporate limited partnership is a corporate limited partnership that has fewer than 50 members or an entity has, directly or indirectly and for the entity’s own benefit, an entitlement to a 75% or greater share of the income or capital of the partnership.

For the purposes of completing N all references to shareholders include partners in a closely held corporate limited partnership.

Write at N the sum of all such loans that have a debit balance at the end of the income year. Write the sum in whole figures only.

Print the relevant code from table 6 in the CODE box at N.

Table 6: Loan codes

Code	Description
A	All loans were made on or after 4 December 1997.
B	All loans were made before 4 December 1997.
M	Some loans were made before 4 December 1997 and some loans were made on or after 4 December 1997.

Under Division 7A of Part III of the ITAA 1936, loans by a private company or a closely held corporate limited partnership to a shareholder or associates of a shareholder (unless the loans come within specified exclusions) are treated as assessable dividends to the extent of the distributable surplus including realised and unrealised profit. Advances or loans to shareholders or associates may represent a distribution of profits and may be assessed to the recipient as unfranked dividends.

A loan made in 2019–20 by a private company or closely held corporate limited partnership to a shareholder (or associate) may be repaid or put on a commercial footing, before the earlier of the due date for lodgment or the date of lodgment of the private company’s or closely held corporate limited partnership’s income tax return for the year in which the loan is made, in order to prevent the loan from being treated as a dividend.

For loans made in an earlier income year that have not been fully repaid by the end of 2019–20, a deemed dividend may arise if the Division 7A minimum yearly repayment has not been made to the company or the closely held corporate limited partnership by the end of 2019–20.

D – Total salary and wage expenses

Write at D the total salary, wage and other labour costs incurred, including directors’ remuneration, as per income statements.

These expenses include any salary and wage component of A Cost of sales item 6, that is, allowances, bonuses, casual labour, retainers and commissions paid to people who received a retainer, and workers compensation paid through the payroll.

Also included are direct and indirect labour costs, directors’ fees, holiday pay, locums, long service leave, lump sum payments, other employee benefits, overtime, payments under an incentive or profit sharing scheme, retiring allowances and sick pay. Any salary and wages paid by a private company to a current or former shareholder or director of the company, or to an associate of such a person, is included here and at Q Payments to associated persons item 8.

However, do not include agency fees, contract payments, sub-contract payments, service fees, superannuation, reimbursements or allowances for travel, management fees, consultant fees, and wages or salaries reimbursed under a government program.

Salary and wage expenses cannot be deducted where you have not complied with your pay as you go (PAYG) withholding obligations. See Removing tax deductibility of non-compliant payments.

Print in the CODE box at D the code from table 7 that matches the description of the expense component where salary and wage expenses have been wholly or predominantly reported at item 6.

Table 7: Salary and wage expenses codes

Code	Salary and wage expenses included in:
C	Cost of sales
A	All other expenses
B	Cost of sales and All other expenses
O	Other than Cost of sales and/or All other expenses

Q – Payments to associated persons

Write at Q the amounts, including salaries, wages, commissions, superannuation contributions, allowances and payments in consequence of retirement or termination of employment, paid by a private company to associated persons. An associated person is a current or former shareholder or director of the company, or an associate of such a person.

Also include the amounts of salaries and wages paid to associated persons at D Total salary and wage expenses item 8.

Record keeping

Excessive remuneration paid to an associated person may not be deductible and could be treated as an unfranked dividend (see section 109 of the ITAA 1936). Records to establish the reasonableness of remuneration include:

• age, if under 18
• hours worked
• nature of duties performed
• other amounts paid, for example, retiring gratuities, bonuses and commissions
• total remuneration.

G – Gross foreign income

Write at G assessable income derived by the company from foreign sources, grossed up by the amount of the foreign tax withheld or paid at source on that income.

R – Net foreign income

Write at R assessable income derived by the company from foreign sources grossed up by the amount of the foreign tax, but net of expenses. This amount includes:

• foreign source capital gains, after offsetting any unapplied capital losses
• assessable dividends paid by a New Zealand company
• income attributable to a dividend from a New Zealand company received from a partnership or trust.

Do not write at R:

• attributed foreign income (such as attributed income from a CFC)
• any amount of Australian franking credits attached to franked distributions received from a New Zealand franking company. Include these amounts at C Australian franking credits from a New Zealand company item 7.

If the amount at R is a loss, print L in the box at the right of the amount.

Foreign losses are not quarantined from domestic assessable income (or from assessable foreign income of a different class) from the first income year starting on or after 1 July 2008.

Foreign source capital gains are made by an Australian resident company if a CGT event happens to any of its overseas CGT assets unless the gains are excluded from assessable income.

Any foreign source capital gains made during the income year should be reported at R and should also be included as part of the company’s total capital gain which is reported at A Net capital gain item 7. For more information about CGT, see the Guide to capital gains tax 2020.

Do not apply debt deductions other than those attributable to an overseas PE of the taxpayer against foreign source income for the purpose of calculating net foreign income or loss.

The company may need to complete either a Consolidated groups losses schedule 2020 or a Losses schedule 2020.

Attributed foreign income

In this section:

• B Listed country
• U Unlisted country
• V Transferor trust

B Listed country

Write at B the amount of attributed foreign income from controlled foreign entities in listed countries. Listed countries are included in Part 8, section 19 of the Income Tax Assessment (1936 Act) Regulation 2015.

Do not include amounts attributed from transferor trusts, see Transferor trust.

U Unlisted country

Write at U the amount of attributed foreign income from controlled foreign entities in unlisted countries. Unlisted countries are countries that are not listed countries in Part 8, section 19 of the Income Tax Assessment (1936 Act) Regulation 2015.

Do not include amounts attributed from transferor trusts, see Transferor trust below.

V Transferor trust

Write at V the amount of attributed foreign income from transferor trusts.

Taxation of financial arrangements (TOFA)

For more information about completing the TOFA labels, including at T, U and S, see:

• TOFA tax return labels
• the Guide to the taxation of financial arrangements (TOFA).

T – Total TOFA gains

Write at T the total of all assessable TOFA gains from financial arrangements recognised at item 6 and item 7.

In working out a company’s total TOFA gains ensure the company’s assessable TOFA gains from financial arrangements included in any of the following is taken into account:

• D Gross distribution from partnerships item 6
• E Gross distribution from trusts item 6
• F Gross interest item 6
• H Total dividends item 6
• J Unrealised gains on revaluation of assets to fair value item 6
• R Other gross income item 6
• E TOFA income from financial arrangements not included in item 6 item 7.

U – Total TOFA losses

Write at U the total of all allowable TOFA losses from financial arrangements recognised at item 6 and item 7.

In working out a company’s total TOFA losses, ensure the company’s allowable TOFA losses from financial arrangements included in any of the following is taken into account:

• D Gross distribution from partnerships item 6
• E Bad debts item 6
• V Interest expenses within Australia item 6
• J Interest expenses overseas item 6
• G Unrealised losses on revaluation of assets to fair value item 6
• S All other expenses item 6
• W TOFA deductions from financial arrangements not included in item 6 item 7.

S –TOFA gains from unrealised movements in the value of financial arrangements

Write at S the total of all TOFA gains recognised at item 6 as a result of unrealised movements in the value of financial arrangements. A company may have TOFA gains from unrealised movements in the value of financial arrangements as a result of making certain TOFA rules tax-timing method elections.

Next step:

• 9. Capital allowances