Asset reporting
Copyright Eric J Taylor, B Com (Adel), FIPA, CTA    All Rights reserved
E-Mail: auditor@aust-smsf-audits.net.au
Australian SMSF Audits is a registered business of Eric J Taylor, ABN 76 114 458 058.

Liability limited by a scheme approved under Professional Standards Legislation.
DISCLAIMER: Refer to the Website & Email page on this website.
 
YOUR WEBSITES NAME
Second Article Headline ...
Duis autem vel eum iriure dolor in hendrerit in vulputate velit esse molestie consequat, vel illum dolore eu feugiat nulla facilisis at vero et accumsan et iusto odio dignissim qui blandit praesent luptatum zzril delenit augue duis dolore te feugait nulla facilisi. Nam liber tempor cum soluta nobis eleifend option congue nihil imperdiet doming id quod mazim placerat facer possim assum. Lorem ipsum dolor sit amet, consectetuer adipiscing elit, sed diam nonummy nibh euismod tincidunt ut laoreet dolore magna aliquam erat volutpat. Duis autem vel eum iriure dolor in hendrerit in vulputate velit esse molestie consequat, vel illum dolore eu feugiat nulla facilisis at vero et accumsan et iusto odio dignissim qui blandit praesent luptatum zzril delenit augue duis dolore te feugait nulla facilisi. Nam liber tempor cum soluta nobis eleifend option congue nihil imperdiet doming id quod mazim placerat facer possim assum. Lorem ipsum dolor sit amet, consectetuer adipiscing elit, sed diam nonummy nibh euismod tincidunt ut laoreet dolore magna aliquam erat volutpat.

Does a trustee need to revalue assets every year?

 

Regulation 8.02B of the SIS Act required all assets of a self-managed superannuation fund to be reported at market value each year.  The first point of that statement is to ascertain what is "market value".  That statement is defined within SISA s.10(1), where it states that:

 

"market value", in relation to an asset, means the amount that a willing buyer of the asset could reasonably be expected to pay to acquire the asset from a willing seller if the following assumptions were made:

 

(a)  that the buyer and the seller dealt with each other at arm's length in relation to the sale;

(b)  that the sale occurred after proper marketing of the asset;

(c)  that the buyer and the seller acted knowledgeably and prudentially in relation to the sale.

 

Except in limited circumstances, such as the selling of a collectible or personal use asset to a related party, the SISA does not specify how market value is to be ascertained.  The ATO has indicated they they would expect trustees to obtain sufficient evidence to make a decision as to the value of each asset and then to maintain a written record, such as a trustee minute, as to how that decision was made.  As auditor, we would need to sight copies of the evidence obtained and the written record.  Failure to do so may lead to a qualified audit opinion..  It should be noted that a breach of SISR 8.02B is a reportable contravention of the Act.

 

While there are no specific requirements for determing market value, these will be considered as reasonable by an auditor:

 

 

 

 

 

Trustees should also be consistant when using value ranges.  If they choose to use the lower or upper end of a range, do so with all assets and the same method each year.

 

About Asset Reporting

PAGE INDEX