Document ID: chunk:federal_register_of_legislation:C2025C00029:section:12:p19
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 12 (pt 19/43)
Character Range: 3992962–3995765

in profit or loss from the arrangement for that income year if:
 (a) the circumstances that existed in relation to the arrangement (including its value) immediately before the leaving time had continued to exist until the end of the income year; and
 (b) any circumstances that arise in relation to the arrangement after the leaving time were disregarded.

230‑425  When election ceases to apply
 (1) An election under subsection 230‑395(1) ceases to have effect from the start of an income year if you cease to be eligible to make an *election to rely on financial reports for that income year.
 (2) Subsection (1) does not prevent you from making a new election under subsection 230‑395(1) at a later time if you become, at that later time, eligible to make an *election to rely on financial reports for an income year.
Note: The new election will only apply to financial arrangements you start to have after the start of the income year in which the new election is made.
 (3) An election under subsection 230‑395(1) ceases to apply to a *financial arrangement from the start of an income year if the arrangement ceases to satisfy a requirement of paragraph 230‑410(1)(c), (d), (e) or (f) during that income year.
 (4) If the election ceases to apply to a particular *financial arrangement under subsection (3), the election cannot subsequently apply to that arrangement (even if the requirements of paragraphs 230‑410(1)(c), (d), (e) and (f) are satisfied once more in relation to the arrangement).

230‑430  Balancing adjustment if election ceases to apply
 (1) You must make balancing adjustments under subsection (2) if an election under subsection 230‑395(1) ceases to have effect under subsection 230‑425(1).
 (2) The balancing adjustments under this subsection are the balancing adjustments you would make under Subdivision 230‑G in relation to each of the *financial arrangements to which the election applied if you disposed of the arrangement for its fair value when the election ceases to have effect.
 (3) You must make balancing adjustments under subsection (5) if an election under subsection 230‑395(1) ceases to apply to a particular *financial arrangement under subsection 230‑425(3).
 (4) Subsection (3) does not apply to a *financial arrangement if:
 (a) the arrangement is not one that you are required (whether or not as a result of a choice you make) by the principles or standards referred to in paragraph 230‑395(2)(a) to classify or designate, in your financial reports, as at fair value through profit or loss; and
 (b) the election under subsection 230‑395(1) ceases to apply to the arrangement because the arrangement fails to satisfy the requirements of paragraph 230‑410(1)(e) or (f); and
 (c) the arrangement ceases to satisfy the requirements of that paragraph because