Document ID: chunk:federal_register_of_legislation:C2013C00453:clause:1_12:p23
Version: federal_register_of_legislation:C2013C00453
Segment Type: clause
Provision Reference: sch 1 cl 12 (pt 23/39)
Character Range: 196607–199631

all rights and/or obligations under financial arrangement
 (2) If subparagraph 230‑435(1)(c)(i) applies, you make the balancing adjustment by applying the method statement in subsection (1) but reduce:
 (a) the amounts referred to in step 1; and
 (b) the amounts referred to in step 2;
by applying the proportion referred to in subparagraph 230‑435(1)(c)(i) to them.

Transfer of specifically identified right or obligation under financial arrangement
 (3) If subparagraph 230‑435(1)(c)(ii) applies, you make the balancing adjustment by applying the method statement in subsection (1) as if the references to:
 (a) the amounts referred to in step 1; and
 (b) the amounts referred to in step 2;
were references to those amounts to the extent to which they are reasonably attributable to the right or obligation referred to in subparagraph 230‑435(1)(c)(ii).

Proportionate transfer of specifically identified right or obligation under financial arrangement
 (4) If subparagraph 230‑435(1)(c)(iii) applies, you make the balancing adjustment by applying the method statement:
 (a) as if the references to:
 (i) the amounts referred to in step 1; and
 (ii) the amounts referred to in step 2;
  were references to those amounts to the extent to which they are reasonably attributable to the right or obligation referred to in subparagraph 230‑435(1)(c)(iii); and
 (b) by reducing those amounts by applying the proportion referred to in subparagraph 230‑435(1)(c)(iii) to them.

Attribution must reflect appropriate and commercially accepted valuation principles
 (5) Any attribution made under subsection (3) or paragraph (4)(a) must reflect appropriate and commercially accepted valuation principles that properly take into account:
 (a) the nature of the rights and obligations under the *financial arrangement; and
 (b) the risks associated with each *financial benefit, right and obligation under the arrangement; and
 (c) the time value of money.

Income year for which gain or loss is made
 (6) The gain or loss you are taken to make under subsection (1), (2), (3) or (4) is a gain or loss for the income year in which the event referred to in subsection 230‑435(1) occurs.

Treatment of bad debts in relation to financial arrangements
 (7) For the purposes of applying paragraph (b) of step 1 of the method statement in subsection (1) to a *financial arrangement, a bad debt deduction in relation to the arrangement to which subsection 230‑25(3) applies is taken to be a deduction for a loss from the arrangement.

Subdivision 230‑H—Exceptions

Table of sections
230‑450 Short‑term arrangements where non‑money amount involved
230‑455 Certain taxpayers where no significant deferral
230‑460 Various rights and/or obligations
230‑465 Ceasing to have a financial arrangement in certain circumstances
230‑470 Forgiveness of commercial debts
230‑475 Clarifying exceptions
230‑480 Treatment of gains in form of franked distribution etc.

230‑450  Short‑term arrangements where non‑money amount involved
  This Division does not