(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