Document ID: chunk:federal_register_of_legislation:C2013C00453:clause:1_12:p19
Version: federal_register_of_legislation:C2013C00453
Segment Type: clause
Provision Reference: sch 1 cl 12 (pt 19/39)
Character Range: 186018–188953

of the arrangement for its fair value when the election ceases to have effect.
 (3) You must make balancing adjustments under subsection (5) if an election under subsection 230‑395(1) ceases to apply to a particular *financial arrangement under subsection 230‑425(3).
 (4) Subsection (3) does not apply to a *financial arrangement if:
 (a) the arrangement is not one that you are required (whether or not as a result of a choice you make) by the standards referred to in paragraph 230‑395(2)(a) to classify or designate, in your financial reports, as at fair value through profit or loss; and
 (b) the election under subsection 230‑395(1) ceases to apply to the arrangement because the arrangement fails to satisfy the requirements of paragraph 230‑410(1)(e) or (f); and
 (c) the arrangement ceases to satisfy the requirements of that paragraph because the arrangement becomes impaired for the purposes of those standards.
 (5) The balancing adjustment under this subsection is the balancing adjustment you would make under Subdivision 230‑G if you disposed of the *financial arrangement for its fair value when the election ceases to apply to the arrangement.
 (6) If a balancing adjustment is made under subsection (2) or (5) in relation to a *financial arrangement, you are taken, for the purposes of this Division, to have reacquired the arrangement at its fair value immediately after the election ceased to have effect or ceased to apply to the arrangement.

Subdivision 230‑G—Balancing adjustment on ceasing to have a financial arrangement

Table of sections
230‑435 When balancing adjustment made
230‑440 Exceptions
230‑445 Balancing adjustment

230‑435  When balancing adjustment made

When balancing adjustment made
 (1) A balancing adjustment is made under this Subdivision if:
 (a) you transfer to another entity all of your rights and/or obligations under a *financial arrangement; or
 (b) all of your rights and/or obligations under a financial arrangement otherwise cease; or
 (c) you transfer to another entity:
 (i) a proportionate share of all of your rights and/or obligations under a financial arrangement; or
 (ii) a right or obligation that you have under a financial arrangement to a specifically identified *financial benefit; or
 (iii) a proportionate share of a right or obligation that you have under a financial arrangement to a specifically identified financial benefit; or
 (d) an *arrangement that is a *Division 230 financial arrangement ceases to be a financial arrangement.
 (2) Paragraphs (1)(a), (b) and (c) do not apply to a right or obligation under a *financial arrangement unless that right or obligation is one of the rights or obligations that constitute the financial arrangement.
Note: See subsections 230‑45(1) and 230‑50(1) and (2) for the rights and/or obligations that constitute a financial arrangement.

Modifications for arrangements that are assets
 (3) If the *financial arrangement