Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p7
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 7/41)
Character Range: 4250071–4252604

a particular method applies to gains or losses you make from 2 or more *financial arrangements; and
 (b) that method allows you to choose the particular manner in which you apply that method;
you must use that same manner consistently for all of those financial arrangements that are essentially of the same nature.

250‑225  Rights and obligations include contingent rights and obligations
  To avoid doubt:
 (a) a right is treated as a right for the purposes of this Division even it is subject to a contingency; and
 (b) an obligation is treated as an obligation for the purpose of this Division even if it is subject to a contingency.

The accruals method

250‑230  Application of accruals method
  The accruals method provided for in sections 250‑235 to 250‑255 applies to a gain or loss you make from the *financial arrangement if:
 (a) the gain or loss is an overall gain or loss from the arrangement; and
 (b) the gain or loss is sufficiently certain at the time when you start to have the arrangement.

250‑235  Overview of the accruals method
  If the accruals method applies to a gain or loss you make from the *financial arrangement:
 (a) you use section 250‑240 to work out the period over which the gain or loss is to be spread; and
 (b) you use section 250‑245 to work out how to allocate the gain or loss to particular intervals within the period over which the gain or loss is to be spread; and
 (c) if an interval to which part of the gain or loss is allocated straddles 2 income years, you use section 250‑250 to work out how to allocate that part of the gain or loss allocated between those 2 income years.

250‑240  Applying accruals method to work out period over which gain or loss is to be spread
  If you have a sufficiently certain overall gain or loss from the *financial arrangement, the period over which the gain or loss is to be spread is the period that:
 (a) starts when you start to have the arrangement; and
 (b) ends when you will cease to have the arrangement.
In applying paragraph (b), you must assume that you will continue to have the arrangement for the rest of its life.

250‑245  How gain or loss is spread

How to spread gain or loss
 (1) This section tells you how to spread a gain or loss to which the accruals method applies.

Compounding accruals or approximation
 (2) The gain or loss is to be spread using:
 (a) compounding accruals (with the intervals to which parts of the gain or loss are allocated complying with subsection (3)); or
 (b) a method whose results approximate those