185‑25 Special translation rules185‑25 Special translation rules

#### 185‑25 Special translation rules (1) If: (a) because of this Division, an amount is to be translated at the exchange rate that would be applicable if the translation were being done for the purposes of Subdivision 960‑C or 960‑D of the Income Tax Assessment Act 1997; and (b) an item in the table applies to the circumstances of the translation; the amount is to be translated at the exchange rate so applicable on the day (the exchange rate day) mentioned in that item in the table. ```html <table cellspacing="0" cellpadding="0" style="margin-left:0.25pt; border-collapse:collapse"><thead><tr><td colspan="3" style="width:343.5pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>Exchange rate days</span></p></td></tr><tr><td style="width:24.4pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span style="font-weight:bold">Item</span></p></td><td style="width:166.4pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span style="font-weight:bold">In these circumstances ...</span></p></td><td style="width:131.1pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span style="font-weight:bold">the </span><span style="font-weight:bold; font-style:italic">exchange rate day</span><span style="font-weight:bold"> is</span></p><p class="Tabletext" style="page-break-after:avoid"><span style="font-weight:bold"></span></p></td></tr></thead><tbody><tr><td style="width:24.4pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>1</span></p></td><td style="width:166.4pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>the amount is an amount of </span><span style="font-size:8pt; vertical-align:3pt">*</span><span>instalment income for an </span><span style="font-size:8pt; vertical-align:3pt">*</span><span>instalment quarter in an </span><span style="font-size:8pt; vertical-align:3pt">*</span><span>MRRT year</span></p></td><td style="width:131.1pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>the last day of the instalment quarter</span></p></td></tr><tr><td style="width:24.4pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>2</span></p></td><td style="width:166.4pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>the amount is an amount of:</span></p><p class="Tablea"><span>(a) </span><span style="font-size:8pt; vertical-align:3pt">*</span><span>mining profit for a mining project interest the </span><span style="font-size:8pt; vertical-align:3pt">*</span><span>entity has in the </span><span style="font-size:8pt; vertical-align:3pt">*</span><span>MRRT year; or</span></p><p class="Tablea"><span>(b) </span><span style="font-size:8pt; vertical-align:3pt">*</span><span>pre</span><span>‑</span><span>mining profit for a </span><span style="font-size:8pt; vertical-align:3pt">*</span><span>pre</span><span>‑</span><span>mining project interest the entity </span><span style="font-size:8pt; vertical-align:3pt">*</span><span>holds in the MRRT year</span></p></td><td style="width:131.1pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>the last day of the MRRT year</span></p></td></tr><tr><td style="width:24.4pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>3</span></p></td><td style="width:166.4pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>the amount is an applied </span><span style="font-size:8pt; vertical-align:3pt">*</span><span>allowance component that is to be translated because of paragraph</span><span> </span><span>185</span><span>‑</span><span>15(7)(c) (the second translation for functional currency)</span></p></td><td style="width:131.1pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>the last day of the </span><span style="font-size:8pt; vertical-align:3pt">*</span><span>MRRT year to which the allowance component relates</span></p></td></tr><tr><td style="width:24.4pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>4</span></p></td><td style="width:166.4pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>an </span><span style="font-size:8pt; vertical-align:3pt">*</span><span>entity is required to translate the amount in an </span><span style="font-size:8pt; vertical-align:3pt">*</span><span>MRRT year (the </span><span style="font-weight:bold; font-style:italic">current year</span><span>) because:</span></p><p class="Tablea"><span>(a) in the preceding MRRT year, the amount was taken into account under the </span><span style="font-size:8pt; vertical-align:3pt">*</span><span>MRRT law in a particular currency; and</span></p><p class="Tablea"><span>(b) in the current year the amount is to be taken into account in a different currency</span></p></td><td style="width:131.1pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>the first day of the current year</span></p><p class="Tablea"><span></span></p></td></tr><tr><td style="width:24.4pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>5</span></p></td><td style="width:166.4pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>an </span><span style="font-size:8pt; vertical-align:3pt">*</span><span>entity is required to translate the amount in an </span><span style="font-size:8pt; vertical-align:3pt">*</span><span>MRRT year because:</span></p><p class="Tablea"><span>(a) the amount relates to a mining project interest the entity has after a </span><span style="font-size:8pt; vertical-align:3pt">*</span><span>mining project transfer or </span><span style="font-size:8pt; vertical-align:3pt">*</span><span>mining project split; and</span></p><p class="Tablea"><span>(b) the entity takes the amount into account in a different currency to the currency in which the entity that had the interest before the transfer or split took the amount into account</span></p></td><td style="width:131.1pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>the day on which the mining project transfer or mining project split happens</span></p></td></tr><tr><td style="width:24.4pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>6</span></p></td><td style="width:166.4pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>an </span><span style="font-size:8pt; vertical-align:3pt">*</span><span>entity is required to translate the amount in an </span><span style="font-size:8pt; vertical-align:3pt">*</span><span>MRRT year because:</span></p><p class="Tablea"><span>(a) the amount relates to a </span><span style="font-size:8pt; vertical-align:3pt">*</span><span>pre</span><span>‑</span><span>mining project interest the entity has after a </span><span style="font-size:8pt; vertical-align:3pt">*</span><span>pre</span><span>‑</span><span>mining project transfer or </span><span style="font-size:8pt; vertical-align:3pt">*</span><span>pre</span><span>‑</span><span>mining project split; and</span></p><p class="Tablea"><span>(b) the entity takes the amount into account in a different currency to the currency in which the entity that had the interest before the transfer or split took the amount into account</span></p></td><td style="width:131.1pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>the day on which the pre</span><span>‑</span><span>mining project transfer or pre</span><span>‑</span><span>mining project split happens</span></p></td></tr><tr><td style="width:24.4pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>7</span></p></td><td style="width:166.4pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>the amount is an amount of an </span><span style="font-size:8pt; vertical-align:3pt">*</span><span>entity’s profit for an </span><span style="font-size:8pt; vertical-align:3pt">*</span><span>MRRT year that is to be translated because of subsection</span><span> </span><span>185</span><span>‑</span><span>10(5) (simplified MRRT method)</span></p></td><td style="width:131.1pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>the last day of the MRRT year.</span></p></td></tr></tbody></table> ``` Examples of amounts covered by table item 4 (2) The following are examples of amounts covered by table item 4: (a) an amount of \*mining expenditure for an earlier \*MRRT year; (b) the \*base value of a \*starting base asset for the preceding MRRT year; (c) the decline in value of a starting base asset, worked out under section 90‑5, for the preceding MRRT year; (d) the amount of an \*allowance component for the preceding MRRT year; (e) the amount of an allowance component that has been applied in working out, for the preceding MRRT year, an \*MRRT allowance. Special rule about translation—events that happened before the current choice took effect (3) The table has effect if an \*entity is required to translate an amount in an \*MRRT year (the current year) because: (a) the amount is attributable to an event that happened, or a state of affairs that came into existence at a time (the event time) before the start of the current year; and (b) the amount has not, before the start of the current year, been taken into account under the \*MRRT law in relation to a mining project interest or \*pre‑mining project interest. ```html <table cellspacing="0" cellpadding="0" style="margin-left:0.25pt; border-collapse:collapse"><thead><tr><td colspan="3" style="width:343.5pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>Events before current choice took effect</span></p></td></tr><tr><td style="width:24.9pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span style="font-weight:bold">Item</span></p></td><td style="width:148.5pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span style="font-weight:bold">In this case ...</span></p></td><td style="width:148.5pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext" style="page-break-after:avoid"><span style="font-weight:bold">this is the result ...</span></p></td></tr></thead><tbody><tr><td style="width:24.9pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>1</span></p></td><td style="width:148.5pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>at the event time, no previous choice under subsection</span><span> </span><span>960</span><span>‑</span><span>60(1) of the </span><span style="font-style:italic">Income Tax Assessment Act 1997 </span><span>was in effect in relation to the </span><span style="font-size:8pt; vertical-align:3pt">*</span><span>entity</span></p></td><td style="width:148.5pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>the amount is to be translated:</span></p><p class="Tablea"><span>(a) first, to Australian currency at the exchange rate applicable at the event time; and</span></p><p class="Tablea"><span>(b) then, if necessary, into the currency in which it is to be taken into account in the current year at the exchange rate applicable at the start of the current year.</span></p></td></tr><tr><td style="width:24.9pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>2</span></p></td><td style="width:148.5pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>at the event time, a previous choice under subsection</span><span> </span><span>960</span><span>‑</span><span>60(1) of the </span><span style="font-style:italic">Income Tax Assessment Act 1997 </span><span>was in effect in relation to the </span><span style="font-size:8pt; vertical-align:3pt">*</span><span>entity</span></p></td><td style="width:148.5pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>the amount is to be translated:</span></p><p class="Tablea"><span>(a) first, into the currency that, under section</span><span> </span><span>960</span><span>‑</span><span>70 of the </span><span style="font-style:italic">Income Tax Assessment Act 1997</span><span>, is the entity’s previous applicable functional currency, at the exchange rate applicable at the event time; and</span></p><p class="Tablea"><span>(b) then, if necessary, into the currency in which it is to be taken into account in the current year at the exchange rate applicable at the start of the current year.</span></p></td></tr></tbody></table> ``` Examples of amounts covered by subsection (3) (4) The following are examples of amounts covered by subsection (3): (a) the initial book value of a \*starting base asset under subsection 90‑25(3); (b) an amount of \*interim expenditure incurred in relation to a starting base asset.