(1) This section applies where, under the rules in Divisions II or IV of Part II, a person is required to include an amount or may deduct an amount in relation to a financial instrument in calculating income from a business or investment.

(2) The determination of

(a) the time at which an amount is to be included or deducted,

(b) the person to whom the amount shall be allocated,

(c) the quantum of the amount, and

(d) the character of the amount shall be in accordance with generally accepted accounting principles.

(3) Without limiting subsection (2), the generally accepted accounting principles apply even if the application of the principles requires the inclusion or deduction of an amount on a fair value accounting basis irrespective of

(a) the other provisions of this Division;

(b) whether or not the amounts have been derived, incurred or realised; and

(c) whether or not the amount is of a capital or revenue nature.