Document ID: chunk:federal_register_of_legislation:C2011C00519:clause:1_2:p13
Version: federal_register_of_legislation:C2011C00519
Segment Type: clause
Provision Reference: sch 1 cl 2 (pt 13/21)
Character Range: 85731–88447

you re‑estimate a gain and the amount to which you apply the rate of return increases—you make a gain from the *financial arrangement, for the income year in which you make the re‑estimation, equal to the amount of the increase;
 (b) if you re‑estimate a gain and the amount to which you apply the rate of return decreases—you make a loss from the arrangement, for the income year in which you make the re‑estimation, equal to the amount of the decrease;
 (c) if you re‑estimate a loss and the amount to which you apply the rate of return increases—you make a loss from the arrangement, for the income year in which you make the re‑estimation, equal to the amount of the increase;
 (d) if you re‑estimate a loss and the amount to which you apply the rate of return decreases—you make a gain from the arrangement, the income year in which you make the re‑estimation, equal to the amount of the decrease.

250‑260  Re‑estimation if balancing adjustment on partial disposal

Re‑estimation if balancing adjustment on partial disposal

 (1) You also re‑estimate a gain or loss from a *financial arrangement under subsection (2) if a balancing adjustment is made in relation to the financial arrangement under sections 250‑265 to 250‑275 because you transfer to another person:
 (a) a proportionate share of all of your rights and/or obligations under a *financial arrangement; or
 (b) a right or obligation that you have under a financial arrangement to a specifically identified *financial benefit; or
 (c) a proportionate share of a right or obligation that you have under a financial arrangement to a specifically identified financial benefit.
You must re‑estimate the gain or loss as soon as reasonably practicable after the transfer occurs.

Nature of re‑estimation

 (2) Making a re‑estimation in relation to a gain or loss under this subsection involves:
 (a) a fresh determination of the amount of the gain or loss disregarding:
 (i) *financial benefits; and
 (ii) amounts of the gain or loss that have already been allocated to intervals ending before the re‑estimation is made;
  to the extent to which they are reasonably attributable to the proportionate share, or the right or obligation, referred to in paragraph (1)(b); and
 (b) a reapplication of the accruals method to the redetermined gain or loss to make a fresh allocation of the part of that gain or loss that has not already been allocated to intervals ending before the re‑estimation is made to intervals ending after the re‑estimation is made.

Basis for re‑estimation

 (3) You make the fresh allocation of the gain or loss under subsection (2) by maintaining the rate of return being used and adjusting the amount to which you apply the rate