Income Tax Assessment Act 1997

Chapter 4 inserted by No 162 of 2001.

Part 4-5 inserted by No 162 of 2001.

Division 820 inserted by No 162 of 2001.

Subdivision 820-G inserted by No 162 of 2001.

S 820-683 repealed by No 65 of 2019, s 3 and Sch 1 item 13, effective 1 October 2019. For application and transitional provisions, see note under s 820-680(2) . S 820-683 formerly read:

SECTION 820-683 Recognition of internally generated intangible items - modifying application of accounting standards  
Accounting standards prevent recognition of some items

820-683(1)
Subsection (2) applies in relation to an item, other than internally generated goodwill (within the meaning of *accounting standard AASB 138), if:

(a) the item cannot be recognised under that standard as an internally generated intangible asset (within the meaning of that standard) because that standard determines that the cost of the item cannot be distinguished from the cost of developing the entity ' s business as a whole; and

(b) the item would otherwise meet criteria under that standard for recognition as such an asset.

Note 1:

As a general rule, an entity must comply with the accounting standards when recognising its assets for the purposes of this Division (see subsections 820-680(1) and (1A)).

Note 2:

This section does not apply to ADIs (see subsection (6)).

Entity may choose to recognise the item as an intangible asset

820-683(2)
Despite subsections 820-680(1) and (1A), the entity may choose to recognise the item as such an asset for a period for the purposes of this Division (other than section 820-960).

Note:

Section 820-960 is about records for Australian permanent establishments.

820-683(3)
A choice under subsection (2):

(a) must be in writing and may cover more than one item; and

(b) must be made before the due day for lodging the entity ' s *income tax return for the income year that is, or that includes, the period; and

(c) subject to subsection (4), has effect, for the entity and the item, for the period and each later period.

820-683(4)
The entity may, in writing, revoke a choice under subsection (2). The revocation has effect:

(a) for each period in the income year for which the entity is next required to lodge an *income tax return; and

(b) for each later period.

820-683(5)
When:

(a) recognising an item as an asset under this section; and

(b) calculating the value of the asset (including revaluing the asset);

the entity must, to the maximum extent possible, comply with the *accounting standards as if the recognition were allowed by those standards. This subsection has effect subject to section 820-684.

Note:

Section 820-684 will allow the entity to revalue the asset even if accounting standard AASB 138 would prevent this because of the absence of an active market.

Choice not available to ADIs

820-683(6)
An entity cannot make a choice under subsection (2) for a period if, for the period, the entity is an *outward investing entity (ADI) or an *inward investing entity (ADI).

S 820-683 inserted by No 145 of 2008, s 3 and Sch 2 item 5, applicable to assessments for each income year starting on or after 9 December 2008.