Document ID: chunk:federal_register_of_legislation:C2013C00453:clause:1_12:p8
Version: federal_register_of_legislation:C2013C00453
Segment Type: clause
Provision Reference: sch 1 cl 12 (pt 8/39)
Character Range: 158432–161023

you create, acquire or apply the arrangement, a record that sets out:
 (i) a statement of why, and the way in which, the arrangement operates commercially or economically as a hedge of the *hedged item or items; and
 (ii) the reasons why the arrangement does not satisfy the requirements of the standards referred to in paragraph 230‑315(2)(a) to be a hedging instrument;
 (b) you must, at the end of each income year during which you have the arrangement, make a record of the accumulated gains and/or losses (whether realised or unrealised) as at the end of that income year from the arrangement or arrangements relating to the hedged item or items that are yet to be included in your assessable income or allowed to you as deductions;
 (c) you must have, at the time when you create, acquire or apply the arrangement, a record that sets out your risk management policies and practices;
 (d) you must have in place, at the time when you create, acquire or apply the arrangement, internal risk management systems and controls that record the arrangement and the hedged item or items.
 (6) For the purposes of paragraph (5)(b), you must assume that:
 (a) all the gains from the *financial arrangement would be assessable income; and
 (b) all the losses from the financial arrangement would be allowed to you as deductions.

230‑360  Determining basis for allocating gain or loss
 (1) A requirement of this section is that you must determine the basis on which your gain or loss from the *hedging financial arrangement is to be allocated to an income year, or over 2 or more income years, for the purposes of this Division.
 (2) It is also a requirement of this section that the basis that you determine must:
 (a) fairly and reasonably correspond with the basis on which gains, losses or other amounts in relation to the *hedged item or items are recognised or allocated under this Act; and
 (b) be objective; and
 (c) be sufficiently precise and detailed that, when your gain, loss or other amount from the *hedged item or items is taken into account for the purposes of this Act, the following will be clear from the record made under section 230‑355:
 (i) the time at which the gain or loss from the *hedging financial arrangement is to be taken into account for the purposes of this Division;
 (ii) the way in which that gain or loss will be dealt with under section 230‑310.
Note: Paragraph (a) refers to an amount in relation to the hedged item or items being recognised or allocated under this Act. This would include an amount being allowed as a deduction or an amount being included