Section EW 25B — Income Tax Act 2007: Consistency of use of IFRS method

EW 25B Consistency of use of IFRS method Consistency (1) A person who uses a method for IFRS under section EW 15C for a financial arrangement must use the method for— (a) the remaining term of the arrangement until section EW 29 requires them to calculate a base price adjustment for the arrangement: (b) other financial arrangements that are the same as, or similar to, the arrangement unless a different accounting treatment under IFRSs is used. Exception (2) Despite subsection (1)(a), a person may change a method for IFRS if— (a) the new method is available to them to use; and (b) the accounting treatment for the financial arrangement under IFRSs is changed in the same income year in which the method is changed for tax purposes. Spreading method adjustment (3) For the purposes of subsection (2), section EW 26(3), (4) , and EW 27 apply as if the change in method were a change under section EW 26(2). However, those sections do not apply if the change— (a) is from the fair value method; and (b) relates to a financial arrangement that is not subject to a creditor workout. Modification (4) Section EZ 52B (Consistency of use of IFRS method: Determination G3 change allowed) modifies subsection (2). Defined in this Act: creditor workout , fair value method , financial arrangement , IFRS , income year Compare: 2004 No 35 s EW 25B Section EW 25B: inserted, on 1 April 2008, by section 376 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section EW 25B(3): amended (with effect on 1 April 2008), on 7 December 2009, by section 20 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63). Section EW 25B(3): amended (with effect on 1 April 2008), on 6 October 2009, by section 144(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section EW 25B(3)(a): substituted (with effect on 1 April 2008), on 7 December 2009, by section 20 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63). Section EW 25B(3)(b): substituted (with effect on 1 April 2008), on 7 December 2009, by section 20 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63). Section EW 25B(4) heading: added (with effect on 1 April 2008), on 6 October 2009, by section 144(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section EW 25B(4): added (with effect on 1 April 2008), on 6 October 2009, by section 144(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section EW 25B list of defined terms creditor workout : inserted (with effect on 1 April 2008), on 6 October 2009, by section 144(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).