Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p5
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 5/41)
Character Range: 4245024–4247926

(integrity measure)
250‑225 Rights and obligations include contingent rights and obligations

The accruals method
250‑230 Application of accruals method
250‑235 Overview of the accruals method
250‑240 Applying accruals method to work out period over which gain or loss is to be spread
250‑245 How gain or loss is spread
250‑250 Allocating gain or loss to income years
250‑255 When to re‑estimate
250‑260 Re‑estimation if balancing adjustment on partial disposal

Balancing adjustment
250‑265 When balancing adjustment made
250‑270 Exception for subsidiary member leaving consolidated group
250‑275 Balancing adjustment

Other provisions
250‑280 Financial arrangement received or provided as consideration

Guide to Subdivision 250‑E

250‑190  What this Subdivision is about

      This Subdivision is about the tax treatment of gains and losses from the financial arrangement that you are taken to have under section 250‑155.
      You recognise gains and losses from the financial arrangement, as appropriate, over the life of the financial arrangement and ignore distinctions between income and capital. You use a compounding accruals method to recognise the gain or loss.
      A change in circumstances may cause a re‑estimation of gains and losses that the accruals method is being applied to.
      A balancing adjustment is made if you transfer particular rights or obligations or particular rights or obligations cease.

Application and objects of Subdivision

250‑195  Application of Subdivision
  This Subdivision applies for the purposes of working out the amount of the gain or loss that is to be included in your assessable income or allowed as a deduction in relation to the *financial arrangement that is taken to exist under section 250‑155.

250‑200  Objects of this Subdivision
  The objects of this Subdivision are:
 (a) to properly recognise gains and losses from the *financial arrangement by allocating them to appropriate periods of time; and
 (b) to minimise tax deferral.

Tax treatment of gains and losses from financial arrangements

250‑205  Gains are assessable and losses deductible

Gains
 (1) Your assessable income includes a gain you make from the *financial arrangement.

Losses
 (2) You can deduct a loss you make from the *financial arrangement, but only to the extent that:
 (a) you make it in gaining or producing your assessable income; or
 (b) you necessarily make it in carrying on a *business for the purpose of gaining or producing your assessable income.

250‑210  Gain or loss to be taken into account only once under this Act

Purpose of this section
 (1) The purpose of this section is to ensure that your gains that are assessable under this Subdivision, and your losses that are deductible under this Subdivision, are taken into account only once under this Act in working out your taxable income.

Gain or loss
 (2) If a gain or loss is, or is to be,