200‑15 Working out an entity’s profit fo200‑15 Working out an entity’s profit for simplified MRRT method purposes

#### 200‑15 Working out an entity’s profit for simplified MRRT method purposes (1) To work out an \*entity’s profit under this section for an \*MRRT year, work out the entity’s profit in accordance with \*accounting principles. > Note: If the MRRT year is not a 12‑month period, the entity’s profit is affected by section 190‑20 (substituted accounting periods). (1A) For the purposes of subsection (1), assume that, during the whole of the \*MRRT year, the entity has a particular mining project interest to the extent (if any) that the entity has the interest immediately before the end of the year. > Note: Example: If, during the MRRT year, a mining project interest that the entity had at the start of the year was subject to a mining project split with another entity (and they retained their new interests for the rest of the year), the entity’s profit under subsection (1) is worked out as if the entity’s split percentage applied for the whole year. > Note: If the other entity’s profit under subsection (1) is relevant, it is worked out as if the other entity’s split percentage applied for the whole year. (2) However, disregard an amount that would otherwise form part of the \*entity’s profit under subsection (1) to the extent that it is one or more of the following: (a) any interest expenses; (b) any taxation expenses; (c) any earnings or expenses that do not relate, directly or indirectly, to a \*mining revenue event; (d) any expenses that give rise to a \*royalty credit the entity has for the year; (e) any expenses that give rise to a \*private mining royalty the entity has for the year; (f) any exceptional earnings or expenses. > Note: Example: For the 2014‑15 MRRT year, MinerCo has earnings of $200 million and expenses of $150 million, giving a profit of $50 million. However, MinerCo has earnings of $51 million that do not relate to a mining revenue event and the following expenses: (a) interest expenses of $20 million; (b) taxation expenses of $20 million; (c) expenses that do not relate to a mining revenue event of $10 million; (d) mining royalties of $20 million; (e) private mining royalties of $10 million. > Note: Disregarding these earnings and expenses for the purposes of subsection (2), MinerCo’s adjusted earnings are $149 million ($200 million ‑ $51 million) and its adjusted expenses are $70 million ($150 million ‑ sum of the expenses in paragraphs (a) to (e)). MinerCo’s profit under this section for the year is $79 million ($149 million ‑ $70 million). (3) The amount of profit that relates to a mining project interest the \*entity has for the year is so much of the entity’s profit for the year as is reasonably attributable to that interest.