Document ID: chunk:federal_register_of_legislation:C2013C00453:clause:1_1:p38
Version: federal_register_of_legislation:C2013C00453
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 38/52)
Character Range: 94981–97557

follows:
 (a) firstly, work out the gain or loss you make from the arrangement for the first year in accordance with section 230‑230 (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 230‑230 (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 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.

230‑220  Financial arrangements to which fair value election applies
 (1) A *fair value election applies in relation to *financial arrangements that:
 (a) are *Division 230 financial arrangements; and
 (b) are recognised in financial reports of the kind referred to in paragraph 230‑210(2)(a) that are audited, or required to be audited, as referred to in paragraph 230‑210(2)(b); and
 (c) are assets or liabilities that you are required (whether or not as a result of a choice you make) by:
 (i) the *accounting standards; or
 (ii) if those standards do not apply to the preparation of the financial report—comparable accounting standards that apply to the preparation of the financial report under a *foreign law;
  to classify or designate, in the financial reports, as at fair value through profit or loss; and
 (d) you start to have in the income year in which you make the election or in a later income year.