Document ID: chunk:federal_register_of_legislation:C2013C00453:clause:1_12:p5
Version: federal_register_of_legislation:C2013C00453
Segment Type: clause
Provision Reference: sch 1 cl 12 (pt 5/39)
Character Range: 150818–153573

one financial arrangement hedging the same risk or risks
 (9) If 2 or more *financial arrangements hedge the same risk or risks, each of the arrangements may only be a hedging financial arrangement if the standards referred to in paragraph (1)(b) allow those arrangements to be viewed in combination and jointly designated as hedging that risk or those risks.

Hedged item
 (10) If a *financial arrangement that you have hedges a risk in relation to:
 (a) an asset or a part of an asset; or
 (b) a liability or a part of a liability; or
 (c) a firm commitment (within the meaning of the *accounting standards) or a part of such a commitment; or
 (d) a highly probable forecast transaction (within the meaning of the accounting standards) or a part of such a transaction; or
 (e) a net investment in a foreign operation (within the meaning of the accounting standards) or a part of such an investment; or
 (f) something prescribed by the regulations for the purposes of this paragraph;
the asset (or that part of the asset), the liability (or that part of the liability), the commitment (or that part of the commitment), the transaction (or that part of the transaction) or the investment (or that part of the investment) is a hedged item for the arrangement.
 (11) If a *financial arrangement is a *hedging financial arrangement because of paragraph (4)(a), the anticipated dividend referred to in that subparagraph is a hedged item for the arrangement even if subsection (10) is not satisfied in relation to the anticipated dividend.

230‑340  Generally whole arrangement must be financial hedging arrangement
 (1) Subject to subsections (2), (3) and (4), the whole of a *financial arrangement must satisfy the requirements of subsection 230‑335(1) or (3) for the arrangement to be a hedging financial arrangement.

Partial hedges
 (2) If a *financial arrangement:
 (a) is an options contract; and
 (b) hedges risk only in part by reference to changes in the intrinsic value of the options contract;
the arrangement may be treated as a hedging financial arrangement to the extent to which the part of the arrangement referred to in paragraph (b) satisfies the requirements of subsection 230‑335(1) or (3).
 (3) If a *financial arrangement:
 (a) is a forward contract; and
 (b) has a spot price element and an interest element;
the arrangement may be treated as a hedging financial arrangement to the extent to which the spot price element satisfies the requirements of subsection 230‑335(1) or (3).

Proportionate hedges
 (4) A specified proportion of a *financial arrangement may be treated as a hedging financial arrangement to the extent to which that proportion of the arrangement satisfies the requirements of subsection 230‑335(1) or (3).

Separate