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INCOME TAX ASSESSMENT ACT 1997 - SECT 230.290

Balancing adjustment if election ceases to apply

             (1)  You must make balancing adjustments under subsection (2) if a * foreign exchange retranslation election ceases to have effect under subsection 230-285(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 (but only to the extent to which the balancing adjustment is reasonably attributable to a * currency exchange rate effect).

             (3)  You must make a balancing adjustment under this section if a * foreign exchange retranslation election ceases to apply to a particular * financial arrangement under subsection 230-285(3) or (5).

             (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 (but only to the extent to which the balancing adjustment is reasonably attributable to a * currency exchange rate effect).

             (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.

Table of sections

230-295    Objects of this Subdivision

230-300    Applying hedging financial arrangement method to gains and losses

230-305    Table of events and allocation rules

230-310    Aligning tax classification of gain or loss from hedging financial arrangement with tax classification of hedged item

230-315    Hedging financial arrangement election

230-320    Hedging financial arrangement election where differing income and accounting years

230-325    Hedging financial arrangements to which election applies

230-330    Hedging financial arrangements to which election does not apply

230-335    Hedging financial arrangement and hedged item

230-340    Generally whole arrangement must be hedging financial arrangement

230-345    Requirements not satisfied because of honest mistake or inadvertence

230-350    Derivative financial arrangement and foreign currency hedge

230-355    Recording requirements

230-360    Determining basis for allocating gain or loss

230-365    Effectiveness of the hedge

230-370    When election ceases to apply

230-375    Balancing adjustment if election ceases to apply

230-380    Commissioner may determine that requirement met

230-385    Consequences of failure to meet requirements



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