Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p22
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 22/55)
Character Range: 3853144–3855570

(i) for all of those things as your gains and losses from the arrangement; and
 (c) in working out a gain or loss from a thing for the purposes of subparagraph (b)(i), and, if the accruals method applies to the gain or loss, how it is to be spread and allocated:
 (i) if the thing is a leg—take into account the amount of the notional principal at a time and in a manner that properly reflects the way in which the financial benefits in respect of that leg are calculated; and
 (ii) if the thing is not a leg—take into account an amount relevant to the thing at a time and in a manner that properly reflects the way in which the financial benefits in respect of that thing are calculated.

The accruals method

230‑125  Overview of the accruals method
  If the accruals method applies to a gain or loss you have from a *financial arrangement:
 (a) you use section 230‑130 to work out the period over which the gain or loss is to be spread; and
 (b) you use section 230‑135 to work out how to allocate the gain or loss to particular intervals within the period over which the gain or loss is to be spread; and
 (c) if an interval to which part of the gain or loss is allocated straddles 2 income years, you use section 230‑170 to work out how to allocate that part of the gain or loss allocated between those 2 income years.

230‑130  Applying accruals method to work out period over which gain or loss is to be spread

Period over which overall gain or loss is to be spread
 (1) If you have a sufficiently certain overall gain or loss from a *financial arrangement under subsection 230‑105(1), the period over which the gain or loss is to be spread is the period that:
 (a) starts when you start to have the arrangement; and
 (b) ends when you will cease to have the arrangement.
In applying paragraph (b), you must assume that you will continue to have the arrangement for the rest of its life.

Period over which particular gain or loss is to be spread
 (3) If you have a sufficiently certain gain or loss from a *financial arrangement under subsection 230‑110(1), the period over which the gain or loss is to be spread is the period to which the gain or loss relates. Have regard to the pricing, terms and conditions of the arrangement in working out the period to which the gain or loss relates. This subsection has effect subject to subsections (4) and (5).
 (4) The start of the period over which a gain or loss to which