Document ID: chunk:federal_register_of_legislation:C2011C00519:clause:1_2:p14
Version: federal_register_of_legislation:C2011C00519
Segment Type: clause
Provision Reference: sch 1 cl 2 (pt 14/21)
Character Range: 88214–91001

after the re‑estimation is made.

Basis for re‑estimation

 (3) You make the fresh allocation of the gain or loss under subsection (2) by maintaining the rate of return being used and adjusting the amount to which you apply the rate of return to the present value of the estimated future cash flows discounted at the maintained rate of return. The object to be achieved by the fresh allocation is allow you to bring the remainder of the redetermined gain or loss properly to account over the remainder of the period over which you spread the gain or loss.

Balancing adjustment

250‑265  When balancing adjustment made

When balancing adjustment made

 (1) A balancing adjustment is made under section 250‑275 if:
 (a) you transfer to another person all of your rights and/or obligations under the *financial arrangement; or
 (b) all of your rights and/or obligations under the financial arrangement otherwise substantially cease; or
 (c) you transfer to another person:
 (i) a proportionate share of all of your rights and/or obligations under the financial arrangement; or
 (ii) a right or obligation that you have under the financial arrangement to a specifically identified *financial benefit; or
 (iii) a proportionate share of a right or obligation that you have under the financial arrangement to a specifically identified financial benefit.

Modifications for arrangements that are assets

 (2) The following modifications are made if the *financial arrangement is an asset of yours at the time the event referred to in subsection (1) occurs:
 (a) paragraphs (1)(a) and (c) do not apply unless the effect of the transfer is to transfer to the other person substantially all the risks and rewards of ownership of the interest transferred;
 (b) for the purposes of applying section 250‑275 to the arrangement, you are treated as transferring a right under the arrangement to another person if:
 (i) you retain the right but assume a new obligation; and
 (ii) your assumption of the new obligation has the same effect, in substance, as transferring the right to another person; and
 (iii) the new obligation arises only to the extent to which the right to *financial benefits under the financial arrangement is satisfied; and
 (iv) you cannot sell or pledge the right (other than as security in relation to the new obligation); and
 (v) you must, under the new obligation, provide financial benefits you receive in relation to the right to the person to whom you owe the new obligation without delay.

250‑270  Exception for subsidiary member leaving consolidated group

  A balancing adjustment is not made under section 250‑275 in relation to a subsidiary member of a*consolidated group or a *MEC group that has the *financial arrangement ceasing to be a member of the group.