Document ID: chunk:federal_register_of_legislation:C2025C00029:section:12:p10
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 12 (pt 10/43)
Character Range: 3970111–3972901

(i) on a regular basis in accordance with the *accounting principles; and
 (ii) at least once in each 12 month period; and
 (d) your assessment must be that the hedging of the risk will be effective (within the meaning of the principles or standards referred to in paragraph 230‑315(2)(a)) in reducing your exposure to changes in the fair value of the hedged item or items or cash flows attributable to the hedged risk throughout the remainder of the period for which you expect to have the arrangement.

230‑370  When election ceases to apply
 (1) A *hedging financial arrangement election ceases to have effect from the start of an income year if you cease to be eligible under subsection 230‑315(2) to make the election for that income year.
 (2) Subsection (1) does not prevent you from making a new *hedging financial arrangement election at a later time if you become, at that later time, eligible under subsection 230‑315(2) to make an election for an income year.
Note: The new election will only apply to financial arrangements you start to have after the start of the income year in which the new election is made.

230‑375  Balancing adjustment if election ceases to apply
 (1) This section applies if a *hedging financial arrangement election ceases to have effect under subsection 230‑370(1).
 (2) You are taken, for the purposes of this Division, to have:
 (a) disposed of each *hedging financial arrangement to which the election applies for its fair value immediately before the election ceases to have effect; and
 (b) reacquired the arrangement at its fair value immediately after the election ceases to have effect.
 (3) To avoid doubt, this Subdivision applies, for the purposes of working out the consequences of the disposal referred to in paragraph (2)(a), as if the *hedging financial arrangement were one to which the *hedging financial arrangement election applied at the time of the disposal.

230‑380  Commissioner may determine that requirement met

Commissioner may determine that requirement met
 (1) If (apart from this section) the requirements of sections 230‑355 to 230‑365 are not met in relation to a *hedging financial arrangement that you have, treat those requirements as having been so met if the Commissioner makes a determination under subsection (1A) in relation to the arrangement.
 (1A) The Commissioner may make the determination if the Commissioner considers that this is appropriate, having regard to:
 (a) the respects in which the arrangement does not meet those requirements; and
 (b) the extent to which it does not meet those requirements; and
 (c) the reasons why it does not meet those requirements; and
 (d) if the Commissioner is considering whether to impose conditions under subsection (2)—the likelihood that you will comply with