Document ID: chunk:federal_register_of_legislation:C2013C00453:clause:1_1:p9
Version: federal_register_of_legislation:C2013C00453
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 9/52)
Character Range: 24306–27091

the right or obligation as mentioned in paragraph (b) or (c) (whether or not you intend to satisfy or settle the right or obligation in that way) and you do not have, as your sole or dominant purpose for entering into the arrangement under which you are to receive or provide the financial benefit, the purpose of receiving or delivering the financial benefit as part of your expected purchase, sale or usage requirements.
A reference in paragraph (b) or (c) to a financial arrangement does not include a reference to something that is a financial arrangement under section 230‑50.
Note: Examples of dealing of the kind covered by paragraph (e) are:
(a) dealing with the right or obligation, or similar rights or obligations, on a frequent basis, a short‑term basis or on a frequent and short‑term basis; and
(b) acquiring the right or obligation, or similar rights or obligations, and managing the resulting risk by entering into offsetting arrangements that provide a profit margin.
 (3) You satisfy this subsection if:
 (a) the *financial benefit is readily convertible into money or a *money equivalent; and
 (b) there is a market for the financial benefit that has a high degree of liquidity; and
 (c) either:
 (i) the amount of the money or money equivalent referred to in paragraph (a) is not subject to a substantial risk of change in value; or
 (ii) your purpose, or one of your purposes, for entering into the arrangement under which you are to receive or provide the financial benefit, is to receive or deliver the financial benefit so that it may be converted or liquidated into money or a money equivalent (other than in the ordinary course of business).

230‑50  Financial arrangement (equity interest or right or obligation in relation to equity interest)
 (1) You also have a financial arrangement if you have an *equity interest. The equity interest constitutes the financial arrangement.
 (2) You also have a financial arrangement if:
 (a) you have, under an *arrangement:
 (i) a legal or equitable right to receive something that is a financial arrangement under this section; or
 (ii) a legal or equitable obligation to provide something that is a financial arrangement under this section; or
 (iii) a combination of one or more such rights and/or obligations; and
 (b) the right, obligation or combination does not constitute, or form part of, a financial arrangement under subsection 230‑45(1).
The right, obligation or combination referred to in paragraph (a) constitutes the financial arrangement.
Note 1: Paragraph 230‑40(4)(e) prevents the accruals method or the realisation method being applied to something that is a financial arrangement under this section.
Note 2: Subsection 230‑270(1) prevents the retranslation method being applied to something that is