Section EW 21 — Income Tax Act 2007: Financial reporting method

EW 21 Financial reporting method A person who is a party to a financial arrangement may use a financial reporting method if–– (a) the person cannot use the yield to maturity method or an alternative; and (b) the person–– (i) may not use the straight-line method or a market valuation method; or (ii) may use the straight-line method or a market valuation method but chooses not to do so; and (c) the person is not required to use a method under section EW 15B ; and (d) the Commissioner has not made a determination for the financial arrangement under section 90AC(1)(d) of the Tax Administration Act 1994; and (e) the method conforms with commercially acceptable practice; and (f) the method is also used by the person for financial reporting purposes for financial arrangements that are the same as, or similar to, the arrangement (although section EW 23 may apply if the method is not used in this way); and (g) the method allocates a reasonable amount to each income year over the financial arrangement's term. Defined in this Act: amount , Commissioner , financial arrangement , income year Section EW 21: substituted (with effect on 1 April 2008), on 6 October 2009, by section 141 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).