Document ID: chunk:federal_register_of_legislation:C2013C00453:clause:1_1:p26
Version: federal_register_of_legislation:C2013C00453
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 26/52)
Character Range: 66054–68590

if one of the amounts worked out under paragraphs (b) and (d) is a loss and the other is a gain—subtract the loss from the gain. If the result is positive, this is the gain from the arrangement for the income year. If the result is negative, this is the loss from the arrangement for the income year.
  (4) For the purposes of paragraphs (3)(b) and (d), work out how much of the gain or loss is attributable to the income year by:
 (a) using a methodology that is reasonable; and
 (b) using the same methodology for the first and second years.
 (5) For the purposes of paragraph (4)(a), treat a methodology that attributes the gain or loss on a pro‑rata basis as not being reasonable.

230‑160  Portfolio treatment of fees
 (1) This section applies in relation to a *financial arrangement if:
 (a) you have made an election under section 230‑150 in an income year; and
 (b) you start to have the financial arrangement in that income year or a later income year; and
 (c) the financial arrangement is part of a portfolio of similar financial arrangements; and
 (d) a gain or loss to which subsection 230‑130(3) applies arises in part from fees in respect of the *financial arrangement; and
 (e) the fees play an integral role in determining the amount of the gain or loss; and
 (f) the net amount of the fees is not expected to be significant relative to an overall gain or loss from the arrangement.
 (2) For the purposes of this Division, split the gain or loss mentioned in paragraph (1)(d) as follows:
 (a) to the extent that it arises from the fees, treat it as a gain or loss from the *financial arrangement (the fees gain or loss) to which subsection 230‑130(3) applies;
 (b) to the extent that it does not arise from the fees, treat it as a separate gain or loss from the financial arrangement to which subsection 230‑130(3) applies.
Note: The separate gain or loss mentioned in paragraph (b) may itself be split under subsection 230‑165(2) (premium/discount gain or loss).

Determination of period for fees gain or loss
 (3) The period over which the fees gain or loss is to be spread is the period that you determine to be the expected life of the portfolio, if:
 (a) the basis on which you determine the period accords with the spreading of the fees gain or loss for the purposes of the profit or loss statement of the financial report mentioned in paragraph 230‑150(1)(a); and
 (b) the basis on which you determine the period is set and recorded before any fees in respect of the *financial arrangement fall due; and
 (c) the