Income Tax Assessment Act 1997
This section tells you how to spread a gain or loss to which the accruals method applies. Compounding accruals or approximation 250-245(2)
The gain or loss is to be spread using:
(a) compounding accruals (with the intervals to which parts of the gain or loss are allocated complying with subsection (3)); or
(b) a method whose results approximate those obtained using the method referred to in paragraph (a) (having regard to the length of the period over which the gain or loss is to be spread). Intervals to which parts of gain or loss allocated 250-245(3)
The intervals to which parts of the gain or loss are allocated must:
(a) not exceed 12 months; and
(b) all be of the same length.
Paragraph (b) does not apply to the first and last intervals. These may be shorter than the other intervals.Assumption of continuing hold arrangement for the rest of its life 250-245(4)
The gain or loss is to be spread assuming that you will continue to have the *financial arrangement for the rest of its life.
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