This interpretation statement explains when a New Zealand resident investor can choose to apply the cost method to calculate their foreign investment fund (FIF) income on shares held in foreign companies. It includes some examples on when an independent valuation may be required to apply the cost method and how the cost method can be applied.

CA ANZ commends the inclusion of detailed examples and the consideration of practical scenarios in the draft statement. However, CA ANZ recommends reviewing and clarifying certain aspects of the statement and including additional references to further enhance its clarity and utility.