Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 230.172

  (1)   This section applies if:

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

  (i)   a * financial arrangement; or

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

  (b)   you make a loss from the financial arrangement as a result of the impairment; and

  (c)   the accruals method applies to the loss.

  (2)   You cannot deduct a loss you make for an income year under section   230 - 15, to the extent that the loss results from the impairment (including as affected by any later reversal of the impairment loss (within the meaning of the * accounting principles) that resulted from the impairment).

  (3)   Disregard subsection   (2) for the purposes of paragraph   (c) of step 1 of the method statement in subsection   230 - 445(1).