Document ID: chunk:federal_register_of_legislation:C2025C00029:section:12:p16
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 12 (pt 16/43)
Character Range: 3985445–3988217

you make from the arrangement (as determined in accordance with the financial reports);
 (ii) the amount of the overall gain or loss you make from the arrangement (as determined in accordance with the provisions of this Division if the election under this subsection did not apply to the arrangement); and
 (f) the differences between the results of the following methods would reasonably be expected not to be substantial:
 (i) the method used in your financial reports to work out the amounts of the gain or loss you make from the arrangement for each income year;
 (ii) the method that would be applied by this Division to work out the amounts of those gains or losses if the election did not apply to the arrangement.
This subsection has effect subject to section 230‑415.
 (2) In applying paragraph (1)(f) at the time when you start to have the *financial arrangement, disregard any differences between the results of the methods referred to in subparagraphs (1)(f)(i) and (ii) that are attributable solely to the provision for the possible impairment of debts required by the principles or standards referred to in paragraph 230‑395(2)(a).
 (3) Subsections (4), (5) and (6) apply if, but for this subsection, paragraphs (1)(c) and (d) would not be satisfied in relation to a *financial arrangement because the arrangement is an intra‑group transaction for the purposes of:
 (a) *accounting standard AASB 127 (or another accounting standard prescribed by the regulations for the purposes of this paragraph); or
 (b) if that standard does not apply to the preparation of the financial report—a comparable accounting standard that applies to the preparation of the financial report under a *foreign law.
Note: Financial arrangements between members of a consolidated group or MEC group are not covered by this subsection because the single entity rule in subsection 701‑1(1) operates to treat them as not being financial arrangements for the purposes of this Division.
 (4) Paragraphs (1)(c) and (d) are taken to be satisfied in relation to the *financial arrangement.
 (5) Paragraph (1)(e) applies as if the reference in subparagraph (1)(e)(i) to the amount of the overall gain or loss you make from the *financial arrangement (as determined in accordance with the financial reports) were a reference to the amount of that overall gain or loss (as would be determined in accordance with the financial reports if the arrangement had not been an intra‑group transaction for the purposes of the standard referred to in subsection (3)).
 (6) Paragraph (1)(f) applies as if the reference in subparagraph (1)(f)(i) to the method used in your financial reports to work out the amounts of the gain or loss you make from the arrangement for each income year were a reference to