Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p35
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 35/55)
Character Range: 3883942–3886661

(d) a change to:
 (i) the terms on which credit is to be provided to an entity that is not a party to the arrangement; or
 (ii) the credit rating of an entity that is not a party to the arrangement;
  if a significant obligation or right under the arrangement is dependent on that credit being provided or that rating being maintained;
 (e) if the arrangement is, or includes, a financial asset or financial liability and you prepare your financial reports in accordance with:
 (i) the *accounting principles; or
 (ii) if the accounting principles do not apply to the preparation of the financial report—comparable standards for accounting made under a *foreign law that apply to the preparation of the financial report under a foreign law;
  a change to the terms or conditions of, or circumstances that affect, the arrangement that are sufficient for the financial asset or financial liability to be treated as impaired for the purposes of those principles or standards.
 (3) You do not need to make a reassessment under this section merely because of a change in the fair value of the *financial arrangement.

230‑190  Re‑estimation

When re‑estimation necessary
 (1) You re‑estimate a gain or loss from a *financial arrangement under subsection (5) if:
 (a) the accruals method applies to the gain or loss; and
 (b) circumstances arise that materially affect:
 (i) the amount or value; or
 (ii) the timing;
  of *financial benefits that were taken into account in working out the amount of the gain or loss; and
 (c) the circumstances do not give rise to a re‑estimation under section 230‑200.
 (2) You must re‑estimate the gain or loss as soon as reasonably practicable after you become aware of the circumstances referred to in paragraph (1)(b), if subsection (1) applies.
 (3) Without limiting subsection (1), the following are circumstances of the kind referred to in paragraph (1)(b):
 (a) a material change in market conditions that are relevant to the amount or value of the *financial benefits to be received or provided under the *financial arrangement;
 (b) cash flows that were previously estimated becoming known and the difference between the cash flows that become known and the cash flows that were previously estimates is not insignificant;
 (c) a right to, or a part of a right to, a financial benefit under the arrangement is written off as a bad debt;
 (d) you have made a reassessment under section 230‑185 in relation to gains or losses under the arrangement and you have determined on the reassessment under that section that the accruals method should continue to apply to those gains or losses.
 (3A) You also re‑estimate a gain or loss from a *financial arrangement under subsection (5) if: