190‑15 Changes in accounting periods190‑15 Changes in accounting periods

#### 190‑15 Changes in accounting periods (1) Despite sections 10‑25 and 190‑10, if an \*entity’s accounting period changes for the purposes of the \*income tax law (including by adopting an accounting period in place of \*financial years or by ceasing to adopt such an accounting period), either or both of the following may be affected by this section: (a) the accounting period that would (apart from this section) be the \*MRRT year (the old accounting period) corresponding to the last \*income year in effect before the change; (b) the accounting period that would (apart from this section) be the MRRT year (the new accounting period) corresponding to the first income year in effect after the change. > Note: For accounting periods for income tax purposes, see sections 18 of the Income Tax Assessment Act 1936. Old and new accounting periods ending in the same balancing period (2) If the old accounting period and the new accounting period both end in the same 12 month period between 1 December in a year and 30 November in the next year (a balancing period), the period between the start of the old accounting period and the end of the new accounting period is a single MRRT year. > Note: Example: An entity changes accounting periods from an accounting period ending on 31 March 2014 to an accounting period ending on 31 October 2014. > Note: Because both periods end in the same balancing period, the 19 month period between 1 April 2013 and 31 October 2014 is a single MRRT year. Old and new accounting periods ending in different balancing periods (3) If: (a) the old accounting period and the new accounting period do not end in the same balancing period; and (b) the old accounting period ends after what would (apart from this section) be the start of the new accounting period; so much of the new accounting period as occurs after the end of the old accounting period constitutes a separate MRRT year. > Note: Example: An entity changes accounting periods from an accounting period ending on 30 September 2016 to an accounting period ending on 31 March 2017. > Note: Because the periods do not end in the same balancing period, and because the periods overlap, the 6 month period between 1 October 2016 and 31 March 2017 is a separate MRRT year. (The MRRT year corresponding to the old accounting period is unchanged.) (4) If: (a) the old accounting period and the new accounting period do not end in the same balancing period; and (b) there is a gap between the end of the old accounting period and the start of the new accounting period; the gap constitutes a separate MRRT year. > Note: Example: An entity changes accounting periods from an accounting period ending on 30 November 2017 to an accounting period ending on 31 January 2019. > Note: Because the periods do not end in the same balancing period, and because there is a gap between the periods, the 2 month period between 1 December 2017 and 31 January 2018 is a separate MRRT year. (The MRRT years corresponding to the old accounting period and the new accounting period are unchanged.)