Document ID: chunk:federal_register_of_legislation:C2013C00453:clause:1_12:p9
Version: federal_register_of_legislation:C2013C00453
Segment Type: clause
Provision Reference: sch 1 cl 12 (pt 9/39)
Character Range: 160789–163411

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 in assessable income. If the hedged item were an asset, an amount referable to a part of the cost of the asset might, for example, be allowed as a deduction for a particular income year.
 (3) To avoid doubt, the income years over which your gain or loss is to be allocated may include an income year that starts after you cease to have the *hedging financial arrangement.

230‑365  Effectiveness of the hedge
  The requirement of this section is that:
 (a) hedging the risk must be expected to be highly effective (within the meaning of the standards referred to in paragraph 230‑315(2)(a)), for the period for which you expect to have the *hedging financial arrangement, in reducing your exposure to changes in the fair value of the *hedged item or items or cash flows attributable to your hedged risk; and
 (b) the fair value of the hedged item or items or cash flows relating to them and the fair value of the arrangement must be able to be reliably measured; and
 (c) you must assess the hedging of the risk by the arrangement:
 (i) on a regular basis in accordance with the *accounting standards; and
 (ii) at least once in each 12 month period;
  and your assessment must be that it will be highly effective (within the meaning of the standards referred to in paragraph 230‑315(2)(a)) in reducing your exposure to changes in the fair value of the hedged item or items or cash flows attributable to the hedged risk throughout the remainder of the period for which you expect to have the arrangement.

230‑370  When election ceases to apply
 (1) A *hedging financial arrangement election ceases to have effect from the start of an income year if you cease to be eligible under subsection 230‑315(2) to make the election for that income year.
 (2) Subsection (1) does not prevent you from making a new *hedging financial arrangement election at a later time if you become, at that later time, eligible under subsection 230‑315(2) to make an election for an income year.
Note: The new election will only apply to financial arrangements you start to have after the start of the income year in which the new election is made.

230‑375  Balancing adjustment if election ceases to apply
 (1) This section applies if a *hedging financial arrangement election ceases to have effect under subsection 230‑370(1).
 (2) You are taken, for the purposes of this Division, to have:
 (a) disposed of