Document ID: chunk:federal_register_of_legislation:C2013C00453:clause:1_1:p42
Version: federal_register_of_legislation:C2013C00453
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 42/52)
Character Range: 104864–107842

in relation to the arrangement).

230‑245  Balancing adjustment if election ceases to apply
 (1) You must make balancing adjustments under subsection (2) if a *fair value election ceases to have effect under subsection 230‑240(1).
 (2) The balancing adjustments under this subsection are the balancing adjustments you would make under Subdivision 230‑G for each of the *financial arrangements to which the election applied if you disposed of the arrangement for its fair value when the election ceases to have effect.
 (3) You must make a balancing adjustment under subsection (4) if a *fair value election ceases to apply to a particular *financial arrangement under subsection 230‑240(3).
 (4) The balancing adjustment under this subsection is the balancing adjustment you would make under Subdivision 230‑G if you disposed of the *financial arrangement for its fair value when the election ceases to apply to the arrangement.
 (5) If a balancing adjustment is made under subsection (2) or (4) in relation to a *financial arrangement, you are taken, for the purposes of this Division, to have reacquired the arrangement at its fair value immediately after the election ceased to have effect or ceased to apply to the arrangement.

Subdivision 230‑D—Foreign exchange retranslation method

Table of sections
230‑250 Objects of this Subdivision
230‑255 Foreign exchange retranslation election
230‑260 Foreign exchange retranslation election where differing income and accounting years
230‑265 Financial arrangements to which general election applies
230‑270 Financial arrangements to which general election does not apply
230‑275 Balancing adjustment for election in relation to qualifying forex accounts
230‑280 Applying foreign exchange retranslation method to gains and losses
230‑285 When election ceases to apply
230‑290 Balancing adjustment if election ceases to apply

230‑250  Objects of this Subdivision
  The objects of this Subdivision are:
 (a) to allow you to align the tax treatment of gains and losses from foreign exchange rate changes with the accounting treatment of profits and losses from such changes; and
 (b) to achieve this without allowing you to obtain an inappropriate tax benefit.

230‑255  Foreign exchange retranslation election

General election
 (1) You may make a foreign exchange retranslation election under this subsection if you are eligible under subsection (2) to make the election for the income year in which you make the election.

Eligibility to make election
 (2) You are eligible to make a *foreign exchange retranslation 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