Document ID: chunk:federal_register_of_legislation:C2013C00453:clause:1_12:p13
Version: federal_register_of_legislation:C2013C00453
Segment Type: clause
Provision Reference: sch 1 cl 12 (pt 13/39)
Character Range: 171127–173769

the purposes of this Division.
Note 2: For the purposes of paragraphs (c) and (e), a qualification or assessment may be relevant to the taxation treatment of financial arrangements even though it does not deal with the amount or timing of recognition of gains or losses (but relates, for example, to the reliability of the accounting systems through which information about financial arrangements is recorded).
 (3) Paragraph (2)(e) does not apply to a report of:
 (a) an internal audit or review that you conduct; or
 (b) an audit or review of a kind prescribed by the regulations for the purposes of this paragraph.

Election irrevocable
 (4) An election under subsection (1) is irrevocable.
Note: The election may cease to apply under section 230‑425.

230‑400  Financial reports election where differing income and accounting years
 (1) This section applies if:
 (a) you prepare a financial report for a year (the first year); and
 (b) you prepare a financial report for the subsequent year (the second year); and
 (c) your income year starts in the first year and ends in the second year; and
 (d) both the financial report for the first year and the financial report for the second year are:
 (i) prepared in accordance with paragraph 230‑395(2)(a); and
 (ii) audited in accordance with paragraph 230‑395(2)(b); and
 (e) the auditor's reports are unqualified for both the financial report for the first year and the financial report for the second year.
 (2) Treat yourself as eligible to make an election for the income year under subsection 230‑395(2).
 (3) Work out the gain or loss you make from the arrangement for the income year as follows:
 (a) firstly, work out the gain or loss you make from the arrangement for the first year in accordance with section 230‑420 (treating the first year as an income year);
 (b) next, work out how much of the gain or loss mentioned in paragraph (a) is attributable to the income year in accordance with subsection (4);
 (c) next, work out the gain or loss you make from the arrangement for the second year in accordance with section 230‑420 (treating the second year as an income year);
 (d) next, work out how much of the gain or loss mentioned in paragraph (c) is attributable to the income year in accordance with subsection (4);
 (e) next:
 (i) if the amounts worked out under paragraphs (b) and (d) are both gains—add them together to work out the gain from the arrangement for the income year; or
 (ii) if the amounts worked out under paragraphs (b) and (d) are both losses—add them together to work out the loss from the arrangement for the income year; or
 (iii) if one of the amounts