Document ID: chunk:federal_register_of_legislation:C2013C00453:clause:1_1:p40
Version: federal_register_of_legislation:C2013C00453
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 40/52)
Character Range: 99863–102598

arrangement; and
 (b) the arrangement is a *qualifying security; and
 (c) you have not made an election under subsection 230‑455(7).
 (3) A *fair value election does not apply to a *financial arrangement if:
 (a) the election is made by the *head company of a *consolidated group or *MEC group; and
 (b) the election specifies that the election is not to apply to financial arrangements in relation to *life insurance business carried on by a member of the consolidated group or MEC group; and
 (c) the arrangement is one that relates to the life insurance business carried on by a member of the consolidated group or MEC group.
 (4) A *fair value election does not apply to a *financial arrangement if the arrangement is associated with a business of a kind specified in regulations made for the purposes of this subsection.

230‑230  Applying fair value method to gains and losses
 (1) If a *fair value election applies to your *financial arrangement, the gain or loss you make from the arrangement for an income year is:
 (a) the gain or loss that the standards referred to in paragraph 230‑210(2)(a) require you to recognise in profit or loss for the income year from the asset or liability mentioned in paragraph 230‑220(1)(c); or
 (b) if subsection 230‑220(2) applies to the arrangement—the gain or loss that the standards referred to in paragraph 230‑220(1)(c) would have required you to recognise in profit or loss for the year from the asset or liability mentioned in paragraph 230‑220(1)(c) if the arrangement had not been an intra‑group transaction for the purposes of the standard referred to in paragraph 230‑220(2)(b); or
 (c) if subsection 230‑220(3) applies to the arrangement—the gain or loss that the standards referred to in paragraph 230‑220(1)(c) would have required you to recognise in profit or loss for the year from the asset or liability mentioned in paragraph 230‑220(1)(c) if the arrangement had been between 2 separate entities.
Note: Subsection 230‑40(7) provides that an election under Subdivision 230‑E (hedging financial arrangements method) or Subdivision 230‑F (method of relying on financial reports) may override a fair value election.
 (2) Subsection (3) applies if:
 (a) a *head company of a *consolidated group or *MEC group has a *financial arrangement; and
 (b) a *fair value election applies to the arrangement; and
 (c) a subsidiary member of the group ceases to be a member of the group at a particular time (the leaving time); and
 (d) immediately after the leaving time, the head company no longer has the arrangement because the subsidiary member ceased to be a member of the group.
 (3) The gain or loss the group makes from the arrangement for the income year in which the leaving time