Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This section applies if:
(a) at least one * alteration time has occurred in relation to the * head company of the * consolidated group since the formation time and before the leaving time; and
(b) the leaving time is not an * alteration time for the leaving entity under subsection 715 - 245(2).
(2) The leaving time is an alteration time for the leaving entity.
(3) However, for the purposes of determining when the leaving entity's next * alteration time happens, the reference time under subsection 165 - 115L(2) or 165 - 115M(2) is the time just after the most recent alteration time for the * head company before the leaving time.
(4) The leaving entity is a loss company at the leaving time if, and only if, the * head company would have had an * adjusted unrealised loss at the most recent * alteration time (the head company alteration time ) for the head company before the leaving time if that adjusted unrealised loss (if any) were worked out on the basis that:
(a) the head company chooses whether the * individual asset method or the * global method is used; and
(b) a * CGT asset is taken into account only if:
(i) the head company owned it at the head company alteration time; and
(ii) it becomes a CGT asset of the leaving entity at the leaving time because subsection 701 - 1(1) (the single entity rule) ceases to apply to the entity; and
(c) if the individual asset method is used, then for the purposes of:
(i) step 1 of the method statement in subsection 165 - 115U(1); and
(ii) the method statement in subsection 165 - 115W(1);
the head company had no earlier alteration time.
(5) If the leaving entity is a * loss company at the leaving time, its overall loss at that time is the * adjusted unrealised loss worked out under subsection (4).