Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) Subject to subsections (2), (3) and (4), the whole of a * financial arrangement must satisfy the requirements of subsection 230 - 335(1) or (3) for the arrangement to be a hedging financial arrangement .
Partial hedges
(2) If a * financial arrangement:
(a) is an options contract; and
(b) hedges risk only in part by reference to changes in the intrinsic value of the options contract;
the arrangement may be treated as a hedging financial arrangement to the extent to which the part of the arrangement referred to in paragraph (b) satisfies the requirements of subsection 230 - 335(1) or (3).
(3) If a * financial arrangement:
(a) is a forward contract; and
(b) has a spot price element and an interest element;
the arrangement may be treated as a hedging financial arrangement to the extent to which the spot price element satisfies the requirements of subsection 230 - 335(1) or (3).
(4) A specified proportion of a * financial arrangement may be treated as a hedging financial arrangement to the extent to which that proportion of the arrangement satisfies the requirements of subsection 230 - 335(1) or (3).
Separate financial arrangements if partial or proportionate hedge
(5) If a part (or parts), or a proportion (or proportions), of a * financial arrangement is (or are) treated as a * hedging financial arrangement under subsection (2), (3) or (4):
(a) the part (or each of the parts), or the proportion (or each of the proportions), of the arrangement that is (or are) treated as a hedging financial arrangement is taken to be a separate financial arrangement for the purposes of this Division; and
(b) the remaining part or proportion (if any) of the arrangement is taken to be a separate financial arrangement for the purposes of this Division.
(6) Subsection (5) has effect even if there would not be
separate * arrangements under subsection 230 - 55(4).