(1) For the purposes of paragraph 230 - 300(5)(a), the following table lists events and their consequences:
Table of events and allocation rules | ||
Item | If this event occurs ... | Your gain or loss is allocated ... |
1 | (a) you revoke the hedging designation; or (b) you redesignate your * hedging financial arrangement; or (c) you cease to meet the requirement of section 230 - 365 in relation to your hedging financial arrangement | over income years according to the basis determined under subsection 230 - 360(1). |
2 | (a) you cease to have the * hedged item or all of the hedged items; or (b) you cease to expect that the hedged item or items will come into existence; or (c) you cease to expect that you will have the hedged item or items | to the income year in which the event occurs. |
2A | (a) you cease to have one or more (but not all) of the * hedged items; or (b) you cease to expect that one or more (but not all) of the hedged items will come into existence; or (c) you cease to expect that you will have one or more (but not all) of the hedged items | (a) to the extent to which the gain or loss is reasonably attributable to those one or more hedged items--to the income year in which the event occurs; and (b) to the extent to which the gain or loss is reasonably attributable to the remaining hedged item or items--over income years according to the basis determined under subsection 230 - 360(1). |
3 | a risk being hedged by your * hedging financial arrangement ceases to exist | to the income year in which the risk ceases to exist. |
(2) For the purposes of item 2A of the table in subsection (1), determine the extent to which the gain or loss is reasonably attributable to a particular * hedged item having regard to the following:
(a) the fair value of the hedged item;
(b) the length of the period over which you have held the hedged item;
(c) commercially accepted valuation principles;
(d) any other relevant factors.