Commonwealth Consolidated Acts Commonwealth Consolidated ActsTrading stock
(1) If an asset of the joining entity is * trading stock, the joining entity’s terminating value for the asset is:
(a) if the asset was on hand at the start of the income year in which the joining time occurs (including because of the operation of Division 701)—its * value at that time; or
(b) if paragraph (a) does not apply and the asset is * livestock that was acquired by natural increase—the * cost of the asset; or
(c) in any other case—the amount of the outgoing incurred by the joining entity in connection with the acquisition of the asset;
increased by the amount of any outgoing forming part of the cost of the asset that is incurred by the joining entity during its current holding of the asset.
Qualifying securities
(2) If an asset of the joining entity is a qualifying security (within the meaning of Division 16E of Part III of the Income Tax Assessment Act 1936 ) that is not * trading stock, the joining entity’s terminating value for the asset is equal to the amount of consideration that the joining entity would need to receive, if it were to dispose of the asset just before the joining time, without an amount being assessable income of, or deductible to, the joining entity under section 159GS of the Income Tax Assessment Act 1936 .
Depreciating assets
(3) If an asset of the joining entity is a * depreciating asset, the joining entity’s terminating value for the asset is equal to the asset’s * adjustable value just before the joining time.
Other CGT assets
(4) If an asset of the joining entity is a * CGT asset that is not covered by any of the above subsections, the joining entity’s terminating value for the asset is equal to the asset’s * cost base just before the joining time.
Other assets
(5) The joining entity’s terminating value for any other asset that it holds is the amount that would be the asset’s * cost base just before the joining time if it were an asset covered by subsection (4).