Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p26
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 26/55)
Character Range: 3862585–3865189

accordance with paragraph 230‑140(3)(f) (treating the first year as an income year);
 (b) next, work out how much of the gain or loss mentioned in paragraph (a) is attributable to the income year in accordance with subsection (4);
 (c) next, work out the gain or loss you make from the arrangement for the second year in accordance with paragraph 230‑140(3)(f) (treating the second year as an income year);
 (d) next, work out how much of the gain or loss mentioned in paragraph (c) is attributable to the income year in accordance with subsection (4);
 (e) next:
 (i) if the amounts worked out under paragraphs (b) and (d) are both gains—add them together to work out the gain from the arrangement for the income year; or
 (ii) if the amounts worked out under paragraphs (b) and (d) are both losses—add them together to work out the loss from the arrangement for the income year; or
 (iii) if one of the amounts worked out under paragraphs (b) and (d) is a loss and the other is a gain—subtract the loss from the gain. If the result is positive, this is the gain from the arrangement for the income year. If the result is negative, this is the loss from the arrangement for the income year.
 (4) For the purposes of paragraphs (3)(b) and (d), work out how much of the gain or loss is attributable to the income year by:
 (a) using a methodology that is reasonable; and
 (b) using the same methodology for the first and second years.

230‑150  Election for portfolio treatment of fees
 (1) You may make an election for an income year under this section if:
 (a) you prepare a financial report for the income year in accordance with:
 (i) the *accounting principles; or
 (ii) if the accounting principles do not apply to the preparation of the financial report—comparable standards for accounting made under a *foreign law that apply to the preparation of the financial report under a foreign law; and
 (b) the financial report is audited in accordance with:
 (i) the *auditing principles; or
 (ii) if the auditing principles do not apply to the auditing of the financial report—comparable standards for auditing made under a foreign law.
 (2) An election under this section is irrevocable.

230‑155  Election for portfolio treatment of fees where differing income and accounting years
 (1) This section applies if:
 (a) you prepare a financial report for a year (the first year); and
 (b) you prepare a financial report for the subsequent year (the second year); and
 (c) your income year starts in the first year and ends in the second year; and
 (d) both the financial report for the first year and the