Section FE 10 — Income Tax Act 2007: Currency

FE 10 Currency Calculations (1) In this subpart, the following values must be calculated in New Zealand currency: (a) an amount of total group debt and an amount of total group assets of a New Zealand group or of a worldwide group: (b) a financial arrangement or risk-weighted exposure. Currency conversions for excess debt entity (2) If the value referred to in subsection (1) is denominated in a foreign currency, an excess debt entity must convert the value to New Zealand currency at— (a) the close of trading spot exchange rate for the foreign currency on the relevant measurement date under section FE 8 ; or (b) the forward exchange rate that applies on the first day of the income year for the relevant measurement date under section FE 8 . Currency conversions for reporting bank (3) If the value referred to in subsection (1) is denominated in a foreign currency, a reporting bank must convert the value to New Zealand currency at the close of trading spot exchange rate for the foreign currency on the relevant measurement date under section FE 8 . Defined in this Act: amount , close of trading spot exchange rate , excess debt entity , financial arrangement , income year , New Zealand , reporting bank , total group assets , total group debt , Compare: 2004 No 35 ss FG 4(7) , FG 5(6) , FG 7 , FG 8I