Document ID: chunk:federal_register_of_legislation:C2013C00453:clause:1_1:p41
Version: federal_register_of_legislation:C2013C00453
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 41/52)
Character Range: 102381–105136

the head company no longer has the arrangement because the subsidiary member ceased to be a member of the group.
 (3) The gain or loss the group makes from the arrangement for the income year in which the leaving time occurs is taken to be the gain or loss that the standards referred to in paragraph 230‑210(2)(a) would require the group to recognise as at fair value through profit or loss for the income year from the asset or liability mentioned in paragraph 230‑220(1)(c) if:
 (a) the circumstances that existed in relation to the arrangement (including its value) immediately before the leaving time had continued to exist until the end of the income year; and
 (b) any circumstances that arise in relation to the financial arrangement after the leaving time were disregarded.

230‑235  Splitting financial arrangements into 2 financial arrangements
 (1) If:
 (a) a *financial arrangement is constituted only in part by an asset or liability mentioned in paragraph 230‑220(1)(c); and
 (b) a *fair value election would apply to the arrangement if it were constituted solely by that asset or liability;
the provisions of this Division (other than this section) apply to the arrangement as if it were instead 2 separate financial arrangements.
 (2) The 2 separate *financial arrangements are:
 (a) one consisting of the part referred to in paragraph (1)(a); and
 (b) one consisting of the remaining part.

230‑240  When election ceases to apply
 (1) A *fair value election ceases to have effect from the start of an income year if you cease to be eligible under subsection 230‑210(2) to make the fair value election for that income year.
 (2) Subsection (1) does not prevent you from making a new *fair value election at a later time if you become, at that later time, eligible under subsection 230‑210(2) to make a fair value election for an income year.
Note: The new election will only apply to financial arrangements you start to have after the start of the income year in which the new election is made.
 (3) A *fair value election ceases to apply to a particular *financial arrangement from the start of an income year if the arrangement ceases to satisfy a requirement of paragraph 230‑220(1)(b) or (c) during that income year.
 (4) If the election ceases to apply to a particular *financial arrangement under subsection (3), the election cannot subsequently reapply to that arrangement (even if the requirements of paragraphs 230‑220(1)(b) and (c) are satisfied once more 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