Document ID: chunk:federal_register_of_legislation:C2025C00029:section:12:p24
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 12 (pt 24/43)
Character Range: 4006154–4009124

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.
230‑481 Registered emissions units

230‑450  Short‑term arrangements where non‑money amount involved
  This Division does not apply in relation to your gains and losses from a *financial arrangement if:
 (a) the arrangement is a financial arrangement under section 230‑45; and
 (b) either:
 (i) you acquired goods or other property (other than goods that are, or property that is, money or a *money equivalent) or services (other than services that are a money equivalent) from another entity and the *financial benefits you are to provide under the arrangement are consideration for those goods, that property or those services; or
 (ii) you provided goods or other property