Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p48
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 48/55)
Character Range: 3916404–3919032

year and the financial report for the second year.
 (2) Treat yourself as eligible to make an election for the income year under subsection 230‑255(2).
 (3) Work out the gain or loss you make from the arrangement for the income year as follows:
 (a) firstly, work out the gain or loss you make from the arrangement for the first year in accordance with section 230‑280 (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 section 230‑280 (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.
 (5) For the purposes of paragraph (4)(a), treat a methodology that attributes the gain or loss on a pro‑rata basis as not being reasonable.

230‑265  Financial arrangements to which general election applies
 (1) A *foreign exchange retranslation election under subsection 230‑255(1) applies to each of your *financial arrangements:
 (a) that are *Division 230 financial arrangements; and
 (b) that are recognised in financial reports of a kind referred to in paragraph 230‑255(2)(a) that are audited, or required to be audited, as referred to in paragraph 230‑255(2)(b); and
 (c) in relation to which you are required by:
 (i) *accounting standard AASB 121 (or another accounting standard prescribed by the regulations for the purposes of this paragraph); or
 (ii) if that standard does not apply to the preparation of the financial report—a comparable accounting standard