Document ID: chunk:federal_register_of_legislation:C2025C00029:section:12:p5
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 12 (pt 5/43)
Character Range: 3957697–3960430

connected entity; and
 (c) the report properly reflects your affairs; and
 (d) the arrangement satisfies the requirements of paragraph (1)(a); and
 (e) the arrangement would satisfy the requirements of paragraph (1)(b) or (c) but for the fact that the consolidated report disregards the arrangement.
 (6) This subsection is satisfied if:
 (a) the period for which the risk or risks are hedged does not straddle 2 or more income years; and
 (b) the *financial arrangement satisfies the requirements of paragraph (1)(a); and
 (c) the arrangement would satisfy the requirements of paragraph (1)(c) if the period for which the risk or risks that are hedged did straddle 2 or more income years.
 (7) This subsection is satisfied if the requirements prescribed by the regulations for the purposes of this subsection are satisfied.

Financial arrangement hedging more than one type of risk
 (8) A *financial arrangement that hedges more than one type of risk may only be a hedging financial arrangement if the principles or standards referred to in paragraph (1)(b) allow the arrangement to be designated as a hedge of those risks.

More than one financial arrangement hedging the same risk or risks
 (9) If 2 or more *financial arrangements hedge the same risk or risks, each of the arrangements may only be a hedging financial arrangement if the principles or standards referred to in paragraph (1)(b) allow those arrangements to be viewed in combination and jointly designated as hedging that risk or those risks.

Hedged item
 (10) If a *financial arrangement that you have hedges a risk in relation to:
 (a) an asset or a part of an asset; or
 (b) a liability or a part of a liability; or
 (c) a firm commitment (within the meaning of the *accounting principles) or a part of such a commitment; or
 (d) a highly probable forecast transaction (within the meaning of the accounting principles) or a part of such a transaction; or
 (e) a net investment in a foreign operation (within the meaning of the accounting principles) or a part of such an investment; or
 (f) something prescribed by the regulations for the purposes of this paragraph;
the asset (or that part of the asset), the liability (or that part of the liability), the commitment (or that part of the commitment), the transaction (or that part of the transaction) or the investment (or that part of the investment) is a hedged item for the arrangement.
 (11) If a *financial arrangement is a *hedging financial arrangement because of paragraph (4)(a), the anticipated dividend referred to in that subparagraph is a hedged item for the arrangement even if subsection (10) is not satisfied in relation to the anticipated dividend.

230‑340  Generally whole arrangement must be