Document ID: chunk:federal_register_of_legislation:C2013C00453:clause:1_1:p15
Version: federal_register_of_legislation:C2013C00453
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 15/52)
Character Range: 39413–42447

particular event
230‑115 Sufficiently certain financial benefits
230‑120 Financial arrangements with notional principal

The accruals method
230‑125 Overview of the accruals method
230‑130 Applying accruals method to work out period over which gain or loss is to be spread
230‑135 How gain or loss is spread
230‑140 Method of spreading gain or loss—effective interest method
230‑145 Application of effective interest method where differing income and accounting years
230‑150 Election for portfolio treatment of fees
230‑155 Election for portfolio treatment of fees where differing income and accounting years
230‑160 Portfolio treatment of fees
230‑165 Portfolio treatment of premiums and discounts for acquiring portfolio
230‑170 Allocating gain or loss to income years
230‑175 Running balancing adjustments

Realisation method
230‑180 Realisation method

Reassessment and re‑estimation
230‑185 Reassessment
230‑190 Re‑estimation
230‑195 Balancing adjustment if rate of return maintained on re‑estimation
230‑200 Re‑estimation if balancing adjustment on partial disposal

Guide to Subdivision 230‑B

230‑90  What this Subdivision is about

      This Subdivision applies the accruals method to determine the amount and timing of gains and losses from a financial arrangement if they are sufficiently certain for such accrual to be done.
      This Subdivision applies the realisation method to determine the amount and timing of gains and losses if they are not sufficiently certain to be dealt with under the accruals method.
      If the accruals method is applied to a gain or loss on the basis of an estimate of a financial benefit and the benefit when received or provided is more or less than the estimate, a balancing adjustment is made to correct for the underestimate or overestimate.
      If the accruals method is being applied to gains and losses from the arrangement and there is a material change to the arrangement, or the circumstances in which it operates, a reassessment is made of whether the accruals method or the realisation method should apply to gains and losses from the arrangement.
      A change in circumstances may also cause a re‑estimation of gains and losses that the accruals method is being applied to.

Objects of Subdivision

230‑95  Objects of this Subdivision
  The objects of this Subdivision are:
 (a) to properly recognise gains and losses from *financial arrangements by allocating them to appropriate periods of time; and
 (b) to reduce compliance costs by reflecting commercial accounting concepts where appropriate; and
 (c) to minimise tax deferral.

When accruals method or realisation method applies

230‑100  When accruals method or realisation method applies

When accruals method applies and when realisation method applies
 (1) This section tells you when to apply the accruals method and when to apply the realisation method if this Subdivision applies to gains and losses from a *financial arrangement.

Accruals method—sufficiently certain overall gain or loss at start time