Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 230.365

    The requirement of this section is that:

  (a)   hedging the risk must be expected to be effective (within the meaning of the principles or standards referred to in paragraph   230 - 315(2)(a)), for the period for which you expect to have the * hedging financial arrangement, in reducing your exposure to changes in the fair value of the * hedged item or items or cash flows attributable to your hedged risk; and

  (b)   the fair value of the hedged item or items or cash flows relating to them and the fair value of the arrangement must be able to be reliably measured; and

  (c)   you must assess the hedging of the risk by the arrangement:

  (i)   on a regular basis in accordance with the * accounting principles; and

  (ii)   at least once in each 12 month period; and

  (d)   your assessment must be that the hedging of the risk will be effective (within the meaning of the principles or standards referred to in paragraph   230 - 315(2)(a)) in reducing your exposure to changes in the fair value of the hedged item or items or cash flows attributable to the hedged risk throughout the remainder of the period for which you expect to have the arrangement.