Document ID: chunk:federal_register_of_legislation:C2013C00453:clause:1_1:p34
Version: federal_register_of_legislation:C2013C00453
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 34/52)
Character Range: 85055–87742

be applied.
The object to be achieved by both bases is to allow you to bring the remainder of the gain or loss based on the new estimates properly to account over the remainder of the period over which you spread the gain or loss.
Note: The amount referred to in paragraph (b) is the amount to which the previous rate of return was being applied immediately before the re‑estimation.
 (7) You satisfy this subsection in relation to a *financial arrangement if every re‑estimation you make under subsection (5) in relation to a gain or loss from the arrangement is made in accordance with:
 (a) financial reports of the kind referred to in paragraph 230‑395(2)(a) that are audited as referred to in paragraph 230‑395(2)(b) (regardless of whether Subdivision 230‑F (reliance on financial reports method) are to apply to a particular financial arrangement); and
 (b) *accounting standard AASB 139 (or another accounting standard prescribed by the regulations for the purposes of this paragraph).
 (8) The following subsections apply if the re‑estimation arises because of an impairment (within the meaning of the *accounting standards) of:
 (a) the *financial arrangement; or
 (b) a financial asset or financial liability that forms part of the arrangement.
 (9) Despite paragraph (6)(a), you must make the fresh allocation in accordance with paragraph (6)(b).
 (10) To the extent that the impairment results in you making a loss for an income year under section 230‑15, you cannot deduct that loss for the income year.

230‑195  Balancing adjustment if rate of return maintained on re‑estimation
 (1) If you make a fresh allocation of the gain or loss on the basis referred to in paragraph 230‑190(6)(a), you must make the following balancing adjustment:
 (a) if you re‑estimate a gain and the amount to which you apply the rate of return increases—you make a gain from the *financial arrangement, for the income year in which you make the re‑estimation, equal to the amount of the increase;
 (b) if you re‑estimate a gain and the amount to which you apply the rate of return decreases—you make a loss from the arrangement, for the income year in which you make the re‑estimation, equal to the amount of the decrease;
 (c) if you re‑estimate a loss and the amount to which you apply the rate of return increases—you make a loss from the arrangement, for the income year in which you make the re‑estimation, equal to the amount of the increase;
 (d) if you re‑estimate a loss and the amount to which you apply the rate of return decreases—you make a gain from the arrangement, for the income year in which you make the re‑estimation, equal to the amount of the decrease.
 (2) Subsection (3)