Document ID: chunk:federal_register_of_legislation:C2013C00453:clause:1_1:p16
Version: federal_register_of_legislation:C2013C00453
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 16/52)
Character Range: 42194–44863

(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
 (2) The accruals method provided for in this Subdivision applies to a gain or loss you make from a *financial arrangement if:
 (a) the gain or loss is an overall gain or loss from the arrangement; and
 (b) the gain or loss is sufficiently certain at the time when you start to have the arrangement.
Note: Subsection 230‑105(1) tells you when you have a sufficiently certain overall gain or loss.

Accruals method—sufficiently certain particular gain or loss
 (3) The accruals method provided for in this Subdivision also applies to a gain or loss you make from a *financial arrangement if:
 (a) the gain or loss arises from a *financial benefit that you are to receive or are to provide under the arrangement; and
 (b) the gain or loss:
 (i) is sufficiently certain at the time when you start to have the arrangement and before you are to receive or provide the benefit; or
 (ii) becomes sufficiently certain after the time when you start to have the arrangement and before you are to receive or provide the benefit; and
 (c) the benefit has not already been taken into account in applying:
 (i) the accruals method provided for in this Subdivision; or
 (ii) the realisation method provided for in this Subdivision;
  to another gain or loss from the arrangement.
This subsection has effect subject to subsection (4).
Note: Subsection 230‑110(1) tells you when you have a sufficiently certain gain or loss at a particular time.
 (4) Subsection (3) does not apply to a gain or loss that you make from a *financial arrangement if:
 (a) you are:
 (i) an individual; or
 (ii) an entity (other than an individual) that satisfies subsection 230‑455(2), (3) or (4) for the income year in which you start to have the arrangement; and
 (b) the arrangement is a *qualifying security; and
 (c) you have not made an election under subsection 230‑455(7).

Realisation method—gain or loss not sufficiently certain
 (5) The realisation method provided for in this Subdivision applies to a gain or loss that you make from a *financial arrangement if the accruals method provided for in this Subdivision does not apply to that gain or loss.
Note: Section 230‑180 tells you how to apply the realisation method to the gain or loss.

230‑105  Sufficiently certain overall gain or loss
 (1) You have a sufficiently certain overall gain or loss from a *financial arrangement at the time when you start to have the arrangement only if it