Document ID: chunk:federal_register_of_legislation:C2013C00453:clause:1_104:p3
Version: federal_register_of_legislation:C2013C00453
Segment Type: clause
Provision Reference: sch 1 cl 104 (pt 3/5)
Character Range: 279936–282582

purpose of hedging a risk in relation to a hedged item.
(10) To avoid doubt, subsection 230‑310(4) does not apply to a financial arrangement that you started to have before the start of the first applicable income year and that you have at the start of that income year.
(11) To avoid doubt, the election referred to in subitem (8) or (9) applies to the financial arrangements referred to in subitem (2) even though you started to have the arrangements before the election is made.
(12) If you make an election under subitem (2), balancing adjustments must be made under subitem (13).
(13) Use the following method statement to make the balancing adjustments under this subitem:

      Balancing adjustment method statement
           Step 1. Work out the total of all the amounts that relate to the financial arrangements and that would have been included in your assessable income if Division 230 of the Income Tax Assessment Act 1997 had applied to gains and losses from the arrangements from the time when you started to have them: the result is the notional assessable amount.
           Step 2. Work out the total of all the amounts that relate to the financial arrangements and that would have been allowable to you as deductions if that Division had applied to gains and losses from the arrangements from the time when you started to have them: the result is the notional deductible amount.
           Step 3. Work out the total of all the amounts that relate to the financial arrangements and have been included in your assessable income from the time when you started to have them: the result is the actual assessed amount.
           Step 4. Work out the total of all the amounts that relate to the financial arrangements and that have been allowable as deductions for you from the time when you started to have them: the result is the actual deducted amount.
           Step 5. Add the notional assessable amount to the actual deducted amount: the result is the step 5 amount.
           Step 6. Add the actual assessed amount to the notional deductible amount: the result is the step 6 amount.
           Step 7. Compare the step 5 amount with the step 6 amount. If the step 5 amount exceeds the step 6 amount, the excess is included in your assessable income as a balancing adjustment. If the step 6 amount exceeds the step 5 amount, the excess is allowable as a deduction as a balancing adjustment. If the step 5 amount and the step 6 amount are equal there is no balancing adjustment.
(14) If:
 (a) an amount is recorded in a deferred tax asset account in accordance with:
 (i) accounting standard AASB 112 (or another accounting