Tax and Superannuation Laws Amendment (2013 Measures No. 2) Act 2013 (85 of 2013)

Schedule 8   Taxation of financial arrangements

Part 2   Accruals/realisation methods

Division 6   Impairments and reversals

Income Tax Assessment Act 1997

27   After subsection 230-130(4)

Insert:

(4A) This subsection applies to a gain or loss to which subsection (3) applies, if:

(a) there is an impairment (within the meaning of the *accounting principles) of:

(i) the *financial arrangement; or

(ii) a financial asset or financial liability that forms part of the arrangement; and

(b) because of the impairment, you make a reassessment under section 230-185 in relation to the arrangement; and

(c) you determine on the reassessment that the gain or loss is not sufficiently certain (whether or not the gain or loss was sufficiently certain before the reassessment); and

(d) there is a reversal of the impairment loss (within the meaning of the accounting principles) that resulted from the impairment; and

(e) because of the reversal, you make a reassessment under section 230-185 in relation to the arrangement; and

(f) you determine on the reassessment that the gain or loss has become sufficiently certain.

Note: For the income years to which the gain or loss is allocated, see section 230-170.