INCOME TAX ASSESSMENT ACT 1997 - SECT 230.245 Balancing adjustment if election ceases to apply

INCOME TAX ASSESSMENT ACT 1997 - SECT 230.245

  (1)   You must make balancing adjustments under subsection   (2) if a * fair value election ceases to have effect under subsection   230 - 240(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.

  (3)   You must make a balancing adjustment under subsection   (4) if a * fair value election ceases to apply to a particular * financial arrangement under subsection   230 - 240(3).

  (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.

  (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.

  (6)   In determining, for the purposes of the balancing adjustment under subsection   (2) or (4) or for the purposes of subsection   (5), the fair value of the * financial arrangement at a time, disregard any changes in the fair value to the extent that:

  (a)   you are required, as mentioned in paragraph   230 - 220(1)(c), to otherwise treat the financial arrangement as at fair value through profit and loss; and

  (b)   the principles or standards referred to in paragraph   230 - 210(2)(a) do not require you to recognise the changes as at fair value through profit or loss.

Table of sections

230 - 250   Objects of this Subdivision

230 - 255   Foreign exchange retranslation election

230 - 260   Foreign exchange retranslation election where differing income and accounting years

230 - 265   Financial arrangements to which general election applies

230 - 270   Financial arrangements to which general election does not apply

230 - 275   Balancing adjustment for election in relation to qualifying forex accounts

230 - 280   Applying foreign exchange retranslation method to gains and losses

230 - 285   When election ceases to apply

230 - 290   Balancing adjustment if election ceases to apply