CAPÍTULO V. RESULTADOS 5.1 ESTRATIGRAFÍA
5.2 ANÁLISIS DE MICROFACIES
5.2.2 Microfacies de la Sierra las Azules, Sonora Microfacies 1 (MF1):
Functional currency translation rate
Complete N Functional currency translation rate item 8
if the company keeps its accounts solely or predominantly in a foreign currency (its applicable functional currency) and has elected to use that functional currency for its tax accounts which it then translates to Australian dollars (A$) to complete its tax return. If the company is using a functional currency, see the publication Guide to functional currency rules, at ato.gov.au
Do not complete N Functional currency translation rate
if the company has elected to use a non-A$ functional currency only to calculate net income attributable to the activities of an overseas Permanent Establishment, Controlled Foreign Company, Offshore Banking Unit or Transferor Trust. For more information, go to ato.gov.au
and search for Foreign income return form guide. Write at N Functional currency translation rate
the exchange rate employed to translate the net taxable income figure from the applicable functional currency into A$. The translation rate is the amount by which the functional currency amount must be divided in order to reflect an equivalent amount of A$, that is, the number of non-A$ currency units that equal one A$, rounded to four significant figures.
If N Functional currency translation rate is completed, also complete O Functional currency chosen.
Functional currency chosen
Complete O Functional currency chosen if
N Functional currency translation rate has been
completed.
Print at O Functional currency chosen the functional currency code that corresponds to the functional currency chosen by the company. A list of the functional currency codes, derived from International Standard ISO 4217, that can be used at label O, is published in the Guide to functional currency rules at ato.gov.au
Show amounts calculated for tax purposes at A Opening stock, S Purchases and other costs, B Closing stock,
J Total debt and K Commercial debt forgiveness.
Opening stock
Write at A Opening stock the total value of all trading stock on hand at the beginning of the income year or accounting period for which the company tax return is being prepared. The amount shown by the company at
A Opening stock is the value for income tax purposes under section 70-40 of the ITAA 1997; or, for small business entities using the simplified trading stock rules, subsection 328-295(1) of the ITAA 1997. The opening value of an item of stock must equal its closing value in the previous income year. If a taxpayer did not have any trading stock in the previous year, the value of trading stock at the start of the year is zero. This might occur in the case of a new business or in the first year a taxpayer has trading stock.
Include motor vehicle floor plan stock and work in progress of manufactured goods.
Do not include any amount that represents opening stock of a business that commenced operations during the income year. Include this amount at S Purchases and other costs item 8.
For consolidated and MEC groups, see the Consolidation reference manual for more information on trading stock held by entities that join the group.
Purchases and other costs
Write at S Purchases and other costs the cost of direct materials used for manufacture, sale or exchange in deriving the gross proceeds or earnings of the business. This amount includes freight inwards.
Former STS Taxpayers
If the company is eligible and continuing to use the STS accounting method, only write at S Purchases and other costs the costs that the company has paid. (See Former STS taxpayers on page 21.)
For information on GST and input tax credits, see 6 Calculation of total profit or loss on page 20.
Closing stock
If the company is an eligible small business entity, see
Small business entities below. Otherwise, see All other companies in the next column.
Small business entities
The company must account for changes in the value of its trading stock only if the difference between:
n the value of the company’s stock on hand at the start of the income year as shown at A Opening stock, and n a reasonable estimate of the value of the company’s
stock on hand at the end of the income year, is more than $5,000.
For more information relating to ‘reasonable estimate’, phone us on 13 28 66.
If the difference is not more than $5,000, the company can still choose to conduct a stocktake and account for changes in the value of trading stock.
If the difference between the value of the opening stock and a reasonable estimate of its closing stock is more than $5,000, the company must account for changes in the value of its trading stock. Go to step 2 if the difference is more than $5,000 or the company wishes to account for changes in the value, otherwise, go to step 1.
Step 1
If the difference referred to above is $5,000 or less and the company chooses not to account for this difference, the closing stock value written at B Closing stock is the
same value that the company wrote for opening stock at
A item 8. Do not put the company’s reasonable estimate
at B Closing stock.
Print in the CODE box at B Closing stock the code from
table 5 that matches the code the company used to value closing stock in the previous year.
If this is the company’s first year in business, the value of its closing stock will be zero. Print code C in the CODE box.
TABLE 5: Valuation method codes
Code Valuation method
C Cost
M Market selling value
R Replacement value
Step 2
If the difference referred to above is more than $5,000 or the company chooses to account for the difference in trading stock, the closing stock values must be brought to account under section 70-35 of the ITAA 1997. See the following instructions for All other companies for calculating the value of trading stock.
Include in closing stock value at B Closing stock the value of all stock on hand, regardless of whether the company has paid for the stock.
All other companies
Write at B Closing stock the total value of all trading stock on hand at the end of the income year or accounting period for which the company tax return is being prepared. The amount at B Closing stock is the value calculated for
income tax purposes under section 70-45 of the ITAA 1997. If the company is registered or required to be registered for GST, the value of closing stock should not include an amount equal to the input tax credit that the company has claimed or is entitled to claim. Input tax credits do not arise for some items of trading stock, such as shares. Include floor plan stock and work in progress of
Do not include any amount that represents closing stock of a business that ceased operations during the income year. Include this amount at Income, R Other gross income item 6.
Print in the CODE box the code from table 5 indicating the method used to value closing stock for income tax purposes. If more than one method is used, use the code applicable to the method representing the highest value. Different methods of valuation may be used to value the same item of trading stock in different income years, and similar items may be valued using different methods in the same income year.
However, the opening value of an item in a particular income year must equal the closing value for that item in the previous income year. The company cannot reduce the value of stock on hand by creating reserves to offset future diminution of the value of stock, or any other factors. Keep records showing how each item was valued.
If incorrect trading stock information has been included on a tax return, advise us by submitting a full statement of the facts, accompanied by a reconciliation of the value of stock as returned for each income year with the values permissible under the law.
Companies engaged in manufacturing include the value of partly manufactured goods as part of their stock and materials on hand at the end of the income year. For more information on the circumstances in which packaging items held by a manufacturer, wholesaler or retailer are ‘trading stock’ as defined in section 70-10 of the ITAA 1997, see Taxation Ruling TR 98/7 – Income tax: whether packaging items (ie, containers, labels, etc) held by a manufacturer, wholesaler or retailer are trading stock and Taxation Ruling TR 98/8 – Income tax: whether materials and spare parts held by a taxpayer supplying services are trading stock.
If the company was a subsidiary member of a consolidated or MEC group at the end of the income year and is completing a tax return because of any non-membership periods, write at B the value for trading stock on hand as at the end of the latest non-membership period. The amount at B is generally a tax-neutral value.
This may not be the case if the company was a continuing majority-owned entity when it became a member of the group. For more information, see the Consolidation reference manual, at ato.gov.au
Trading stock election
A company may elect to value an item of trading stock below the lowest value of cost, market selling value or replacement value because of obsolescence or any other special circumstances. The value that is elected must be reasonable.
For guidelines on trading stock valuations where obsolescence or other special circumstances exist, see Taxation Ruling TR 93/23 – Income tax: valuation of
trading stock subject to obsolescence or other special circumstances.
If an election is made, print X in the Yes box at this item. Otherwise print X in the No box.
Include amounts taken from the company’s financial statements at C Trade debtors to H Total liabilities, and
N Loans to shareholders and their associates as these amounts relate to accounting values – see item names and labels on pages 53–6.
Trade debtors
Write at C Trade debtors the total amounts owing to the company at year end for goods and services provided during the income year, that is, the gross amount of current trade debtors from the company’s accounts. Also include this amount at D All current assets item 8.
If the company was a subsidiary member of a consolidated or MEC group at the end of the income year and is completing a tax return because of any non-membership periods, write at C Trade debtors the
relevant amount as at the end of the latest non-membership period.
All current assets
Write at D All current assets all current assets of the company, including cash on hand, short-term bills receivable, inventories and trade debtors as written at
C Trade debtors item 8.
If the company was a subsidiary member of a consolidated or MEC group at the end of the income year and is completing a tax return because of any non-membership periods, write at D All current assets
the relevant amount as at the end of the latest non-membership period.
Total assets
Write at E Total assets all assets of the company, including fixed, tangible and intangible assets and all current assets as written at D All current assets item 8.
For a consolidated or MEC group include all the assets of the group as disclosed in the financial accounts and not the amounts that are calculated by way of the allocable cost amount.
If the company was a subsidiary member of a consolidated or MEC group at the end of the income year and is completing a tax return because of any non-membership periods, write at E Total assets the relevant amount as at the end of the latest non-membership period.
Trade creditors
Write at F Trade creditors the total amounts owed by
the company at year end for goods and services received during the income year, that is, current trade creditors. Also include this amount at G All current liabilities item 8.
If the company was a subsidiary member of a consolidated or MEC group at the end of the income year and is completing a tax return because of any non-membership periods, write at F Trade creditors
the relevant amount as at the end of the latest non-membership period.
All current liabilities
Write at G All current liabilities the total obligations payable by the company within the coming year. Also include the amount written at F Trade creditors item 8.
If the company was a subsidiary member of a consolidated or MEC group at the end of the income year and is completing a tax return because of any non-membership periods, write at G All current liabilities the relevant amount as at the end of the latest non-membership period.
Total liabilities
Write at H Total liabilities all liabilities of the company, including other creditors and deferred liabilities such as loans secured by mortgage and long-term loans. Also include the amount shown at G All current liabilities item 8.
If the company was a subsidiary member of a consolidated or MEC group at the end of the income year and is completing a tax return because of any non-membership periods, write at H Total liabilities
the relevant amount as at the end of the latest non-membership period.
Total debt
Write at J Total debt the average total debt of the company for the income year. Calculate the average total debt by adding the opening and closing balances of the total debt of the company for the income year, and dividing this sum by two.
The total debt of a company includes all financial instruments and arrangements that were used by the company to provide funds for their operations and investments. The instruments and arrangements that are shown at J Total debt include all loans, securities and instruments that give rise to deductible finance expenses, which include any of the following:
n interest, a payment in the nature of interest, or a payment in substitution for interest
n payments made for assignments of the right to interest n a discount on a security in relation to a finance arrangement n an amount that is taken under a tax law to be an amount of
interest in respect of a lease, a hire-purchase arrangement or any other financial instrument specified by that law n any application or processing fee in respect of a
finance arrangement
n any finance expense in respect of a repurchase agreement or securities lending arrangement n any other form of yield associated with a finance
arrangement
n any such amount that, instead of being paid to a party to the arrangement, is dealt with in any way on behalf of that party.
Accordingly, there is no requirement that amounts included at J Total debt satisfy the definition of ‘debt interest’ for the purposes of Division 974 of the ITAA 1997 (the debt and equity rules).
For an overview of the debt and equity rules, go to
ato.gov.au and search for Debt and equity tests: guide to the debt and equity tests.
If the company was a subsidiary member of a consolidated or MEC group at the end of the income year and is completing a tax return because of any non-membership periods, write at J Total debt the relevant amount calculated as at the end of the latest non-membership period.
Commercial debt forgiveness
Write at K Commercial debt forgiveness the net amount of commercial debts owed by the company that were forgiven during the income year, see Division 245 of the ITAA 1997. Broadly, a debt is a commercial debt if any part of the interest payable on the debt is, or would be, an allowable deduction. A debt is forgiven if the company’s obligation to pay the debt is released or waived or otherwise extinguished.
The net amount of commercial debts forgiven must be applied to reduce the company’s deductible revenue losses, net capital losses, certain undeducted revenue or capital expenditure and the cost base of certain CGT assets, in that order.
For more information, see appendix 1.
Show at J to H and D to V amounts calculated for tax purposes, see item names and labels below. Franked dividends paid
Write at J Franked dividends paid the amount of fully franked dividends paid or credited during the income year, including non-share dividends or deemed dividends that are fully franked, and the franked deemed dividend component of any off-market share buy-back under section 159GZZZP of the ITAA 1936. If a partly franked dividend has been paid during the income year, include the franked portion at J Franked dividends paid and the unfranked portion at K Unfranked dividends paid item 8.
Do not include dividends paid by one member to another within a consolidated or MEC group.
Record keeping
Keep a record of the following:
n dividends or non-share dividends paid n recipients
n dates paid n amounts paid.
Unfranked dividends paid
Write at K Unfranked dividends paid the amount of unfranked dividends paid or credited during the income year, including amounts deemed to be dividends by various sections of the ITAA 1936 and the ITAA 1997. Include unfranked non-share dividends, unfranked deemed dividends under Division 7A of Part III of the ITAA 1936, and the unfranked deemed dividend component of any off-market share buy-back under section 159GZZZP of the ITAA 1936.
Do not include:
n dividends paid by one member to another within a consolidated or MEC group
n a dividend paid under a demerger unless the head entity of the demerger group has elected under subsection 44(2) of the ITAA 1936 that it be treated as an assessable dividend.
Under Division 7A of Part III of the ITAA 1936, payments, loans and debts forgiven (unless they come within specified exclusions) by a private company to a shareholder or associates of a shareholder are treated as assessable dividends to the extent of the private company’s distributable surplus as defined in Division 7A.
The provision of a private company owned asset for the use by a shareholder (or associate of a shareholder) is to be treated as a payment. This includes provisions provided under a lease or licence arrangement.
A payment made in the 2012–13 income year by a private