Document ID: chunk:federal_register_of_legislation:C2013C00453:clause:1_12:p1
Version: federal_register_of_legislation:C2013C00453
Segment Type: clause
Provision Reference: sch 1 cl 12 (pt 1/39)
Character Range: 140130–143394

12                                               a net investment in a foreign operation (within the meaning of the *accounting standards) that is not carried on through:                                                                       (a) to the extent that the net investment would give rise to income that is *non‑assessable non‑exempt income under section 23AH of the Income Tax Assessment Act 1936—is treated as non‑assessable non‑exempt income; and  (a) to the extent that the net investment would give rise to income that is non‑assessable non‑exempt income under section 23AH of the Income Tax Assessment Act 1936—is not deductible; and
                                                 (a) a company in which you hold shares; or                                                                                                                                                      (b) otherwise—is treated in accordance with the item or items in this table that are applicable to the gain.                                                                                                                (b) otherwise—is treated in accordance with the item or items in this table that are applicable to the loss.
                                                 (b) a company that is a subsidiary of yours (within the meaning of the Corporations Act 2001).

 (5) If:
 (a) a *hedged item is your net investment in a foreign operation (within the meaning of the *accounting standards); and
 (b) the foreign operation is carried on through:
 (i) a company in which you hold shares; or
 (ii) a company that is a subsidiary of yours (within the meaning of the Corporations Act 2001);
the hedged item is taken, for the purposes of applying the table in subsection (4), to be the interest you have in the shares of the company.

230‑315  Hedging financial arrangement election

Election
 (1) You can make a hedging financial arrangement election if you are eligible under subsection (2) to make the election for the income year in which you make the election.

Eligibility to make hedging financial arrangement election for an income year
 (2) You are eligible to make a hedging financial arrangement election for an income year if:
 (a) you prepare a financial report for that income year in accordance with:
 (i) the *accounting standards; or
 (ii) if those standards do not apply to the preparation of the financial report—comparable accounting standards made under a *foreign law that apply to the preparation of the financial report under a foreign law; and
 (b) the financial report is audited in accordance with:
 (i) the *auditing standards; or
 (ii) if the auditing standards do not apply to the auditing of the financial report—comparable auditing standards made under a foreign law.
Note: Section 230‑500 allows regulations to be made specifying particular foreign accounting and auditing standards as ones that are to be treated as comparable with Australian accounting and auditing standards for the purposes of this Division.

Election irrevocable
 (3) The *hedging financial arrangement election is irrevocable.
Note: The election may cease to apply under section 230‑385.

230‑320  Hedging financial arrangement election where differing income and