Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p8
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 8/41)
Character Range: 4252367–4254903

or approximation
 (2) The gain or loss is to be spread using:
 (a) compounding accruals (with the intervals to which parts of the gain or loss are allocated complying with subsection (3)); or
 (b) a method whose results approximate those obtained using the method referred to in paragraph (a) (having regard to the length of the period over which the gain or loss is to be spread).

Intervals to which parts of gain or loss allocated
 (3) The intervals to which parts of the gain or loss are allocated must:
 (a) not exceed 12 months; and
 (b) all be of the same length.
Paragraph (b) does not apply to the first and last intervals. These may be shorter than the other intervals.

Assumption of continuing hold arrangement for the rest of its life
 (4) The gain or loss is to be spread assuming that you will continue to have the *financial arrangement for the rest of its life.

250‑250  Allocating gain or loss to income years
 (1) You are taken, for the purposes of section 250‑205, to make, for an income year, a gain or loss equal to a part of a gain or loss if:
 (a) that part of the gain or loss is allocated to an interval under section 250‑245; and
 (b) that interval falls wholly within that income year.
 (2) If:
 (a) a part of a gain or loss is allocated to an interval under section 250‑245; and
 (b) that interval straddles 2 income years;
you are taken, for purposes of section 250‑205, to make a gain or loss equal to so much of that part of the gain or loss as is allocated between those income years on a reasonable basis.
 (3) If:
 (a) a *consolidated group or *MEC group has a *financial arrangement; and
 (b) a subsidiary member of the group ceases to be a member of the group at a particular time (the exit time); and
 (c) immediately after the exit time, the subsidiary member has the financial arrangement;
an income year of the group is taken, for the purposes of applying this section to the group and the financial arrangement, to end at the exit time.

250‑255  When to re‑estimate

When re‑estimation necessary
 (1) You re‑estimate a gain or loss from the *financial arrangement under subsection (4) if circumstances arise that materially affect:
 (a) the amount or value; or
 (b) the timing;
of *financial benefits that were taken into account in working out the amount of the gain or loss. You must re‑estimate the gain or loss as soon as reasonably practicable after you become aware of the circumstances referred to in paragraph (b).
 (2) Without limiting subsection (1), the following are circumstances