This Determination, issued on Wed 28.5.2014, outlines the accounting principles that need to be followed in order for a financial report to satisfy Div 230 of the ITAA 1997 (Taxation of Financial Arrangements or ‘TOFA’ provisions).

It states that a financial report must be prepared in accordance with those accounting standards and authoritative pronouncements of the Australian Accounting Standards Board (AASB) which are relevant to financial arrangements and which are capable of being applied in respect of the affairs of the entity whose financial position and performance is being reported.

The Determination includes an example of a consolidated financial report being prepared by a tax consolidated group. It was previously issued as Draft TD 2013/D8 and contains changes from the Draft.

DATE OF EFFECT: TD 2014/12 applies to years of income commencing both before and after its date of issue.

[LTN 101, 28/5/14]