Section EW 16 — Income Tax Act 2007: Yield to maturity method or alternative

EW 16 Yield to maturity method or alternative Who may use yield to maturity method (1) A person who is a party to a financial arrangement may use the yield to maturity method, if the person is not required to use a method under section EW 15B . Who may use alternative (2) A person who is a party to a financial arrangement may use an alternative to the yield to maturity method, if the person is not required to use a method under section EW 15B , but may do so only if the alternative— (a) has regard to the principles of accrual accounting; and (b) conforms with commercially acceptable practice; and (c) results in the allocation to each income year of amounts that are not materially different from those that would have been allocated using the yield to maturity method; and (d) is also used by the person for financial reporting purposes for financial arrangements that are the same as, or similar to, the arrangements, although section EW 23 may apply if the alternative is not used in this way. Defined in this Act: amount , financial arrangement , IFRS , income year , Compare: 2004 No 35 s EW 16 Section EW 16(1): amended, on 1 April 2008, by section 367(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section EW 16(2): amended, on 1 April 2008, by section 367(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section EW 16 list of defined terms IFRS : inserted, on 1 April 2008, by section 367(3) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).