Document ID: chunk:federal_register_of_legislation:C2013C00453:clause:1_1:p7
Version: federal_register_of_legislation:C2013C00453
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 7/52)
Character Range: 19231–22132

Note: The hedging financial arrangement method may take some account of the gain or loss by reference to the balancing adjustment method (see subsection 230‑300(5)).

Elections override accruals and realisation methods
 (4) Subdivision 230‑B (accruals and realisation method) does not apply to a gain or loss you make from a *financial arrangement:
 (a) if Subdivision 230‑C (fair value method) applies to the arrangement; or
 (b) to the extent that Subdivision 230‑D (foreign exchange retranslation method) applies to the gain or loss; or
 (c) to the extent that Subdivision 230‑E (hedging financial arrangements method) applies to the arrangement; or
 (d) if Subdivision 230‑F (method of relying on financial reports) applies to the arrangement; or
 (e) if the arrangement is a financial arrangement under section 230‑50 (equity interests etc.).

Priorities among election methods
 (5) Subdivision 230‑C (fair value method) does not apply to a gain or loss you make from a *financial arrangement:
 (a) to the extent that Subdivision 230‑E (hedging financial arrangements method) applies to the arrangement; or
 (b) if Subdivision 230‑F (method of relying on financial reports) applies to the arrangement.
 (6) Subdivision 230‑D (foreign exchange retranslation method) does not apply to a gain or loss you make from a *financial arrangement:
 (a) if Subdivision 230‑C (fair value method) applies to the arrangement; or
 (b) to the extent that Subdivision 230‑E (hedging financial arrangements method) applies to the arrangement; or
 (c) if Subdivision 230‑F (method of relying on financial reports) applies to the arrangement.
 (7) Subdivision 230‑F (method of relying on financial reports) does not apply to a gain or loss you make from a *financial arrangement to the extent that Subdivision 230‑E (hedging financial arrangements method) applies to the arrangement.

Financial arrangement concept

230‑45  Financial arrangement
 (1) You have a financial arrangement if you have, under an *arrangement:
 (a) a *cash settlable legal or equitable right to receive a *financial benefit; or
 (b) a cash settlable legal or equitable obligation to provide a financial benefit; or
 (c) a combination of one or more such rights and/or one or more such obligations;
unless:
 (d) you also have under the arrangement one or more legal or equitable rights to receive something and/or one or more legal or equitable obligations to provide something; and
 (e) for one or more of the rights and/or obligations covered by paragraph (d):
 (i) the thing that you have the right to receive, or the obligation to provide, is not a financial benefit; or
 (ii) the right or obligation is not cash settlable; and
 (f) the one or more rights and/or obligations covered by paragraph (e) are not insignificant in comparison with the right, obligation or combination covered by paragraph (a), (b) or (c).
The right, obligation