(1) You must make balancing adjustments under subsection (2) if an election under subsection 230-395(1) ceases to have effect under subsection 230-425(1).
(2) The balancing adjustments under this subsection are the balancing adjustments you would make under Subdivision 230-G in relation to 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.
(3) You must make balancing adjustments under subsection (5) if an election under subsection 230-395(1) ceases to apply to a particular * financial arrangement under subsection 230-425(3).
(4) Subsection (3) does not apply to a * financial arrangement if:
(a) the arrangement is not one that you are required (whether or not as a result of a choice you make) by the principles or standards referred to in paragraph 230-395(2)(a) to classify or designate, in your financial reports, as at fair value through profit or loss; and
(b) the election under subsection 230-395(1) ceases to apply to the arrangement because the arrangement fails to satisfy the requirements of paragraph 230-410(1)(e) or (f); and
(c) the arrangement ceases to satisfy the requirements of that paragraph because the arrangement becomes impaired for the purposes of those principles or standards.
(5) 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.
(6) If a balancing adjustment is made under subsection (2) or (5) 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
230-435 When balancing adjustment made
230-445 Balancing adjustment