Document ID: chunk:federal_register_of_legislation:C2013C00453:clause:1_1:p45
Version: federal_register_of_legislation:C2013C00453
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 45/52)
Character Range: 112542–115446

financial report—a comparable accounting standard that applies to the preparation of the financial report under a *foreign law;
  to recognise, in the financial reports, amounts in profit or loss (if any) that are attributable to changes in currency exchange rates; and
 (d) that you start to have in the income year in which you make the election or in a later income year.
This subsection has effect subject to section 230‑270.
Note: The election also has consequences under Subdivision 775‑F for arrangements that are not Division 230 financial arrangements.
 (2) If, but for this subsection, paragraphs (1)(b) and (c) would not be satisfied in relation to a *financial arrangement because the arrangement is an intra‑group transaction for the purposes of:
 (a) *accounting standard AASB 127 (or another accounting standard prescribed by the regulations for the purposes of this paragraph); or
 (b) if that standard does not apply to the preparation of the financial report—a comparable accounting standard that applies to the preparation of the financial report under a *foreign law;
paragraphs (1)(b) and (c) are taken to be satisfied in relation to the arrangement.
Note: Financial arrangements between members of a consolidated group or MEC group are not covered by this subsection because the single entity rule in subsection 701‑1(1) operates to treat them as not being financial arrangements for the purposes of this Division.
 (3) If:
 (a) the *financial arrangement would not be a financial arrangement if the following provisions were disregarded:
 (i) Division 9A of Part III of the Income Tax Assessment Act 1936 (which deals with offshore banking units);
 (ii) Part IIIB of that Act (which deals with Australian branches of foreign banks etc.); and
 (b) paragraphs (1)(b) and (c) would be satisfied in relation to the financial arrangement if the arrangement had been between 2 separate entities; and
 (c) the *foreign exchange retranslation election under subsection 230‑255(1) is made by:
 (i) if section 121EB of the Income Tax Assessment Act 1936 applies—the OBU mentioned in that section (disregarding the operation of that section); or
 (ii) if section 160ZZW of that Act applies—the bank mentioned in that section (disregarding the operation of that section);
paragraphs (1)(b) and (c) are taken to be satisfied in relation to the arrangement.

230‑270  Financial arrangements to which general election does not apply
 (1) For the purposes of this Division, a *foreign exchange retranslation election under subsection 230‑255(1) does not apply to a *financial arrangement if the arrangement is a financial arrangement under section 230‑50 (equity interests etc.).
 (2) For the purposes of this Division, a *foreign exchange retranslation election under subsection 230‑255(1) does not apply to a *financial arrangement if:
 (a) you are:
 (i) an individual; or
 (ii) an entity (other