Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-10 - FINANCIAL TRANSACTIONS  

Division 230 - Taxation of financial arrangements  

Subdivision 230-B - The accruals/realisation methods  

The accruals method

SECTION 230-130   Applying accruals method to work out period over which gain or loss is to be spread  


Period over which overall gain or loss is to be spread

230-130(1)    
If you have a sufficiently certain overall gain or loss from a *financial arrangement under subsection 230-105(1) , the period over which the gain or loss is to be spread is the period that:


(a) starts when you start to have the arrangement; and


(b) ends when you will cease to have the arrangement.

In applying paragraph (b), you must assume that you will continue to have the arrangement for the rest of its life.


230-130(2)    
(Repealed by No 85 of 2013)



Period over which particular gain or loss is to be spread

230-130(3)    
If you have a sufficiently certain gain or loss from a *financial arrangement under subsection 230-110(1) , the period over which the gain or loss is to be spread is the period to which the gain or loss relates. Have regard to the pricing, terms and conditions of the arrangement in working out the period to which the gain or loss relates. This subsection has effect subject to subsections (4) and (5).

230-130(4)    
The start of the period over which a gain or loss to which subsection (3) applies is to be spread must:


(a) not start earlier than the time when you start to have the *financial arrangement; and


(b) other than in the case of a gain or loss to which subsection 230-100(3A) or subsection (4A) of this section applies - not start earlier than the start of the income year during which it becomes sufficiently certain that you will make the gain or loss.


230-130(4A)    


This subsection applies to a gain or loss to which subsection (3) applies, if:


(a) there is an impairment (within the meaning of the * accounting principles) of:


(i) the * financial arrangement; or

(ii) a financial asset or financial liability that forms part of the arrangement; and


(b) because of the impairment, you make a reassessment under section 230-185 in relation to the arrangement; and


(c) you determine on the reassessment that the gain or loss is not sufficiently certain (whether or not the gain or loss was sufficiently certain before the reassessment); and


(d) there is a reversal of the impairment loss (within the meaning of the accounting principles) that resulted from the impairment; and


(e) because of the reversal, you make a reassessment under section 230-185 in relation to the arrangement; and


(f) you determine on the reassessment that the gain or loss has become sufficiently certain.

Note:

For the income years to which the gain or loss is allocated, see section 230-170 .


230-130(5)    


The end of the period over which a gain or loss to which subsection (3) applies is to be spread must not end later than the time when you will cease to have the * financial arrangement.

 

Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.