Document ID: chunk:federal_register_of_legislation:C2013C00453:clause:1_12:p17
Version: federal_register_of_legislation:C2013C00453
Segment Type: clause
Provision Reference: sch 1 cl 12 (pt 17/39)
Character Range: 181024–183742

reports does not apply to a *financial arrangement if:
 (a) you are:
 (i) an individual; or
 (ii) an entity (other than an individual) that satisfies subsection 230‑455(2), (3) or (4) for the income year in which you start to have the arrangement; and
 (b) the arrangement is a *qualifying security; and
 (c) you have not made an election under subsection 230‑455(7).
 (3) An *election to rely on financial reports does not apply to a *financial arrangement if:
 (a) the election is made by the *head company of a *consolidated group or *MEC group; and
 (b) the election specifies that the election is not to apply to financial arrangements in relation to *life insurance business carried on by a member of the consolidated group or MEC group; and
 (c) the arrangement is one that relates to the life insurance business carried on by a member of the consolidated group or MEC group.
 (4) An *election to rely on financial reports does not apply to a *financial arrangement if the arrangement is associated with a business of a kind specified in regulations made for the purposes of this subsection.

230‑420  Effect of election to rely on financial reports
 (1) If an *election to rely on financial reports applies to a *financial arrangement, the gain or loss you make from the arrangement for an income year is:
 (a) the gain or loss that the standards referred to in paragraph 230‑395(2)(a) require you to recognise in profit or loss from that arrangement for that income year; or
 (b) if subsection 230‑410(3) applies to the arrangement—the gain or loss that the standards referred to in paragraph 230‑395(2)(a) would have required you to recognise in profit or loss from that arrangement for that income year if the arrangement had not been an intra‑group transaction for the purposes of the standard referred to in paragraph 230‑410(3)(b); or
 (c) if subsection 230‑410(8) applies to the arrangement—the gain or loss that the standards referred to in paragraph 230‑410(1)(d) would have required you to recognise in profit or loss for the year from the asset or liability mentioned in paragraph 230‑410(1)(d) if the arrangement had been between 2 separate entities.
Note: Subsection 230‑40(7) provides that this Subdivision does not apply to a gain or loss from a financial arrangement to the extent to which Subdivision 230‑E (hedging financial arrangements method) applies to the arrangement.
 (2) Subsection (3) applies if:
 (a) a *head company of a *consolidated group or *MEC group has a *financial arrangement; and
 (b) an *election to rely on financial reports applies to the arrangement; and
 (c) a subsidiary member of the group ceases to be a member of the group at a particular time (the leaving time);