Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p45
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 45/55)
Character Range: 3908582–3911372

make from the *financial arrangement, to the extent:
 (a) you are required, as mentioned in paragraph 230‑220(1)(c), to otherwise treat as at fair value through profit and loss the assets or liabilities that the financial arrangement is; and
 (b) the principles or standards referred to in paragraph 230‑210(2)(a) do not require you to recognise the gain or loss as at fair value through profit or loss.
Note: See also subsection 230‑40(5).

230‑235  Splitting financial arrangements into 2 financial arrangements
 (1) If:
 (a) a *financial arrangement is constituted only in part by an asset or liability mentioned in paragraph 230‑220(1)(c); and
 (b) a *fair value election would apply to the arrangement if it were constituted solely by that asset or liability;
the provisions of this Division (other than this section) apply to the arrangement as if it were instead 2 separate financial arrangements.
 (2) The 2 separate *financial arrangements are:
 (a) one consisting of the part referred to in paragraph (1)(a); and
 (b) one consisting of the remaining part.

230‑240  When election ceases to apply
 (1) A *fair value election ceases to have effect from the start of an income year if you cease to be eligible under subsection 230‑210(2) to make the fair value election for that income year.
 (2) Subsection (1) does not prevent you from making a new *fair value election at a later time if you become, at that later time, eligible under subsection 230‑210(2) to make a fair value election for an income year.
Note: The new election will only apply to financial arrangements you start to have after the start of the income year in which the new election is made.
 (3) A *fair value election ceases to apply to a particular *financial arrangement from the start of an income year if the arrangement ceases to satisfy a requirement of paragraph 230‑220(1)(b) or (c) during that income year.
 (4) If the election ceases to apply to a particular *financial arrangement under subsection (3), the election cannot subsequently reapply to that arrangement (even if the requirements of paragraphs 230‑220(1)(b) and (c) are satisfied once more in relation to the arrangement).

230‑245  Balancing adjustment if election ceases to apply
 (1) You must make balancing adjustments under subsection (2) if a *fair value election ceases to have effect under subsection 230‑240(1).
 (2) The balancing adjustments under this subsection are the balancing adjustments you would make under Subdivision 230‑G for each of the *financial arrangements to which the election applied if you disposed of the arrangement for its fair value when the election ceases to have effect.
 (3) You must make a balancing adjustment under subsection (4) if a *fair value election ceases to apply to a particular *financial