Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) A requirement of this section is that you must determine the basis on which your gain or loss from the * hedging financial arrangement is to be allocated to an income year, or over 2 or more income years, for the purposes of this Division.
(2) It is also a requirement of this section that the basis that you determine must:
(a) fairly and reasonably correspond with the basis on which gains, losses or other amounts in relation to the * hedged item or items are recognised or allocated under this Act; and
(c) be sufficiently precise and detailed that, when your gain, loss or other amount from the * hedged item or items is taken into account for the purposes of this Act, the following will be clear from the record made under section 230 - 355:
(i) the time at which the gain or loss from the * hedging financial arrangement is to be taken into account for the purposes of this Division;
(ii) the way in which that gain or loss will be dealt with under section 230 - 310.
Note: Paragraph (a) refers to an amount in relation to the hedged item or items being recognised or allocated under this Act. This would include an amount being allowed as a deduction or an amount being included in assessable income. If the hedged item were an asset, an amount referable to a part of the cost of the asset might, for example, be allowed as a deduction for a particular income year.
(3) To avoid doubt, the income years over which your gain or
loss is to be allocated may include an income year that starts after you cease
to have the * hedging financial arrangement.