Valuing fund assets for an SMSF’s annual return
Editor: The ATO has provided the following reminder and general advice for SMSF trustees regarding their obligations to value the assets annually.
One of many responsibilities trustees have when managing an SMSF is valuing the fund’s assets at market value.
This must be done every income year, so the ATO knows the SMSF has complied with super laws.
The market value of an asset is the amount someone could be reasonably expected to pay if the asset was for sale.
Each year, the asset valuations will be reviewed by the fund’s approved SMSF auditor as part of the annual audit prior to lodgment of the SMSF’s annual return (‘SAR’). The auditor will check that assets have been valued correctly, and assess and document whether the basis for the valuation is appropriate given the nature of the asset.
Trustees are reminded to get their valuations done before they go to the auditor, as this will streamline the process and avoid delays. It is also the trustees’ responsibility to provide objective and supportable evidence to the auditor for the valuation of the fund’s assets, including all relevant documents requested by the auditor.
Failure to do so could result in a delay in auditing the fund and potential late lodgment of the fund’s annual return (and could also result in a contravention if the auditor believes mistakes have been made).
The ATO says trustees should “start researching now” to find who can value the fund’s assets and what type of evidence is needed to support the valuation, as this can take time. In some instances, the law requires valuations to be undertaken by a qualified, independent valuer.
—
If you have any questions or would like to speak to one of our professional business and tax advisors, please contact our office on (08) 9392 7600 to make a booking or click here.
With three offices across Western Australia and over 20 years of experience, Muntz Partners is a dynamic team of highly trained and skilled individuals committed to providing innovative and effective advice, excellent service and maintaining only the highest standards in ethical professional practice
Recent Posts
Recent Comments
- Jonathan Bill Kueh on ATO support for businesses in difficult times
- Chloe on COVID 19 Update: Job Keeper Payment Announcement
- Donna on COVID 19 Update: Job Keeper Payment Announcement
- peter jack on COVID 19 Update: Job Keeper Payment Announcement
- Matt on COVID 19 Update: Job Keeper Payment Announcement
Archives
- April 2024
- March 2024
- February 2024
- December 2023
- November 2023
- October 2023
- September 2023
- August 2023
- July 2023
- June 2023
- May 2023
- April 2023
- March 2023
- February 2023
- December 2022
- November 2022
- October 2022
- September 2022
- August 2022
- July 2022
- June 2022
- May 2022
- April 2022
- March 2022
- February 2022
- December 2021
- November 2021
- October 2021
- September 2021
- August 2021
- July 2021
- June 2021
- May 2021
- April 2021
- March 2021
- February 2021
- December 2020
- November 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- February 2020
- December 2019
- November 2019
- October 2019
- August 2019
- July 2019
- June 2019
- May 2019
- April 2019
- February 2019