Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p46
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 46/55)
Character Range: 3911138–3914061

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 arrangement under subsection 230‑240(3).
 (4) 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.
 (5) If a balancing adjustment is made under subsection (2) or (4) 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.
 (6) In determining, for the purposes of the balancing adjustment under subsection (2) or (4) or for the purposes of subsection (5), the fair value of the *financial arrangement at a time, disregard any changes in the fair value to the extent that:
 (a) you are required, as mentioned in paragraph 230‑220(1)(c), to otherwise treat the financial arrangement as at fair value through profit and loss; and
 (b) the principles or standards referred to in paragraph 230‑210(2)(a) do not require you to recognise the changes as at fair value through profit or loss.

Subdivision 230‑D—Foreign exchange retranslation method

Table of sections
230‑250 Objects of this Subdivision
230‑255 Foreign exchange retranslation election
230‑260 Foreign exchange retranslation election where differing income and accounting years
230‑265 Financial arrangements to which general election applies
230‑270 Financial arrangements to which general election does not apply
230‑275 Balancing adjustment for election in relation to qualifying forex accounts
230‑280 Applying foreign exchange retranslation method to gains and losses
230‑285 When election ceases to apply
230‑290 Balancing adjustment if election ceases to apply

230‑250  Objects of this Subdivision
  The objects of this Subdivision are:
 (a) to allow you to align the tax treatment of gains and losses from foreign exchange rate changes with the accounting treatment of profits and losses from such changes; and
 (b) to achieve this without allowing you to obtain an inappropriate tax benefit.

230‑255  Foreign exchange retranslation election

General election
 (1) You may make a foreign exchange retranslation election under this subsection if you are eligible under subsection (2) to make the election for the income year in which you make the election.

Eligibility to make election
 (2) You are eligible to make a *foreign exchange retranslation election for an income year if:
 (a) you prepare a financial report for that income year in accordance with:
 (i) the *accounting principles; or
 (ii) if the accounting principles do not apply to the preparation