This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.
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How to record market valuations
Where the taxpayer has chosen the market valuation approach to value their starting base assets, the ATO may seek the information relating to the market valuation. This information is generally included in a valuation report.
The ATO will consider whether the valuation report:
- is comprehensible
- objectively demonstrates the valuation process undertaken in accordance with valuation industry good practice, and
- is replicable - meaning that the valuation is documented and explained well enough that another person or valuer can understand how the value was determined.
The ATO will consider whether taxpayers have exercised their commercial judgment to determine the level of information and documentation that is appropriate to their particular circumstances.