Document ID: chunk:federal_register_of_legislation:C2013C00453:clause:1_1:p37
Version: federal_register_of_legislation:C2013C00453
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 37/52)
Character Range: 92440–95199

arrangements with the accounting treatment that applies where assets and liabilities are classified or designated as at fair value through profit or loss; and
 (b) to facilitate efficient price‑making; and
 (c) to achieve the above objects without allowing you to obtain an inappropriate tax benefit.

230‑210  Fair value election

Election
 (1) You may make a fair value election under this section if you are eligible under subsection (2) to make the election for the income year in which you make the election.

Eligibility to make fair value election for an income year
 (2) You are eligible to make a fair value election for an income year if:
 (a) you prepare a financial report for that income year in accordance with:
 (i) the *accounting standards; or
 (ii) if those standards do not apply to the preparation of the financial report—comparable accounting standards made under a *foreign law that apply to the preparation of the financial report under a foreign law; and
 (b) the financial report is audited in accordance with:
 (i) the *auditing standards; or
 (ii) if the auditing standards do not apply to the auditing of the financial report—comparable auditing standards made under a foreign law.
Note: Section 230‑500 allows regulations to be made specifying particular foreign accounting and auditing standards as ones that are to be treated as comparable with Australian accounting and auditing standards for the purposes of this Division.

Election irrevocable
 (3) A *fair value election is irrevocable.
Note: The election may cease to have effect, or cease to apply to a particular financial arrangement, under section 230‑240.

230‑215  Fair value election where differing income and accounting years
 (1) This section applies if:
 (a) you prepare a financial report for a year (the first year); and
 (b) you prepare a financial report for the subsequent year (the second year); and
 (c) your income year starts in the first year and ends in the second year; and
 (d) both the financial report for the first year and the financial report for the second year are:
 (i) prepared in accordance with paragraph 230‑210(2)(a); and
 (ii) audited in accordance with paragraph 230‑210(2)(b); and
 (e) the auditor's reports are unqualified for both the financial report for the first year and the financial report for the second year.
 (2) Treat yourself as eligible to make an election for the income year under subsection 230‑210(2).
 (3) Work out the gain or loss you make from the *financial arrangement for the income year as follows:
 (a) firstly, work out the gain or loss you make from the arrangement for the first year in accordance with section 230‑230 (treating the first year as an income year);
 (b) next, work out how much of the gain