are to be measured. If you cease to hold a right to receive foreign currency because you have disposed of that right to another entity, forex realisation event 2 does not apply, but forex realisation event 1 does. For most taxpayers, the values of the foreign exchange at the relevant times will be measured in Australian dollars. The specified time when the forex cost base of a right is measured depends on the particular type of right. Fusion media has no control of the Contents, is not responsible for their accuracy, availability or legality and hereby disclaims any responsibility for the Contents. This is to the extent that the gain is due to a currency exchange rate effect.
AustCo then enters into a forward contract to sell the US1,000 for 850 Euros in three months time (the settlement date). Multiple forex realisation events The most common situations in which multiple forex realisation events occur is in relation to: options to buy or sell foreign currency for another foreign currency forward exchange contracts involving two foreign currencies. The measures specify when the forex cost base is to be measured. The proceeds of assuming the obligation are, broadly, the consideration you are entitled to receive in return for incurring the obligation, less any amounts already brought to account as assessable income. An obligation to receive foreign currency includes an obligation to receive an amount of Australian currency that is calculated by reference to an exchange rate. This call option gives the holder a right to buy US1,000 in three months time for 1,500 New Zealand dollars (NZ). In order to manage the large amount of news and events presented, and to make your trading more effective, you should: Set your time zone. Claim it now, make sure your information is up to date. Forex realisation event 1 (disposal of NZ1,500 cash) Exchange rate A value Cost base of NZ1,500.00 NZ1.25 1,200.00 Capital proceeds - deemed to be the market value of the NZ1,500 when disposed of under subsection 775-40(9) of the itaa 1997.00 NZ1.50 1,000.00 Forex realisation loss 200.00 Forex.