Section EW 14 — Income Tax Act 2007: What spreading methods do

EW 14 What spreading methods do Description (1) The spreading methods are methods of calculating and allocating income and expenditure under a financial arrangement over the arrangement’s term. Methods (2) A spreading method is 1 of the following: (aa) a method for IFRS, to which sections EW 15B to EW 15I relate; or (a) the yield to maturity method or an alternative, to which sections EW 16 , EW 19 , and EW 23 are relevant; or (b) the straight-line method, to which sections EW 17 and EW 19 are relevant; or (c) a market valuation method, to which sections EW 18 , EW 19 , and EW 23 are relevant; or (d) a determination method or an alternative, to which sections EW 20 and EW 23 are relevant; or (e) a financial reporting method, to which sections EW 21 and EW 23 are relevant; or (f) a default method, to which section EW 22 is relevant. Result (3) The amount calculated for and allocated to the income year under a spreading method is— (a) income, under section CC 3 (Financial arrangements), derived by the person in the income year; or (b) expenditure incurred by the person in the income year. Defined in this Act: amount , financial arrangement , income , income year , spreading method , Compare: 2004 No 35 s EW 14 Section EW 14(2)(aa): inserted, on 1 April 2008, by section 364(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section EW 14(2)(e): substituted (with effect on 1 April 2008), on 6 October 2009, by section 133 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).