58DBasic translation rules

#### 58D Basic translation rules (1) If: (a) a person has made an election under section 58B; and (b) that election is in effect for a financial year; the following rules apply: (c) first, for the purpose of working out the taxable profit of the person of the financial year in relation to a petroleum project: (i) an amount that is not in the applicable functional currency is to be translated into the applicable functional currency; and (ii) the definition of foreign currency in section 2 does not apply; and (iii) the applicable functional currency is taken not to be a foreign currency; and (iv) Australian currency and any other currency (except the applicable functional currency) are taken to be foreign currencies; (d) second, the taxable profit of the person of the financial year in relation to the petroleum project is to be translated into Australian currency; (e) third, for the purpose of working out a credit to which the person is entitled under section 46 in relation to the financial year, an amount of excess closing‑down expenditure is to be translated into Australian currency. Examples of an amount (2) The following are examples of an amount: (a) an amount of an expense; (b) an amount of an obligation; (c) an amount of a liability; (d) an amount of a receipt; (e) an amount of a payment; (f) an amount of consideration; (g) a value.