Document ID: chunk:federal_register_of_legislation:C2025C00029:section:12:p18
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 12 (pt 18/43)
Character Range: 3990464–3993201

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 principles or 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 principles or 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 principles or 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); and
 (d) immediately after the leaving time, the subsidiary member has the arrangement.
 (3) The gain or loss the group makes from the *financial arrangement for the income year in which the leaving time occurs is taken to be the gain or loss that the principles or standards referred to in paragraph 230‑395(2)(a) would require the group to recognise in profit or loss from the arrangement for that income year 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