Income Tax Act 2007 section 629

Calculating accrued income profits and losses where section 628 applies

Section 629 explains how to calculate the amount of accrued income profits or losses when the general rule in section 628 applies.

• Where section 628(5) applies, the accrued income profit equals the excess of payment settlements over accrued amounts identified under that provision.
• Where section 628(6) applies, the accrued income loss equals the excess identified under that provision.
• The section simply quantifies the profit or loss — it does not create a new test, but relies on the conditions already established by section 628.
• This is a straightforward measurement rule: whichever excess arises under section 628 determines the precise amount treated as an accrued income profit or loss.