16 Assets
The market value of the fund’s assets must be estimated in accordance with the ancillary fund guidelines and any other directions from us.
Estimates must be completed before the fund is required to lodge their return for the relevant financial year.
For land and buildings, the estimates must have been made within the last three financial years. For assets other than land and buildings, estimates must be as at 30 June 2013.
We consider that where there are circumstances that make the value apparent – for example, all assets of the company are in cash or listed shares – the trustee may use the market value established by the account balance for cash or the listed price of the shares.
However, we also consider that estimating the market value of shares in a private company is likely to be difficult or complex, and so must be estimated by a certified and independent valuer or by the Australian Valuation Office (AVO), which is a part of the ATO.
Estimates of the market value of assets that are land, including buildings, must be made by a certified and independent valuer or by the AVO.
For more information, refer to private AF guidelines 20 to 23 and public AF guidelines 20 to 23.
A Cash
Insert the amount of cash held.
B Estimated market value of shares in a publicly listed entity
Insert the estimated market value of shares in a publicly listed entity.
C Estimated market value of shares in an unlisted entity
Insert the estimated market value of shares in an unlisted entity.
D Loans
Insert the amount that the fund has loaned that has not been repaid.
E Estimated market value of land and buildings
Insert the estimated market value of land and buildings.
F Estimated market value of other property
Insert the estimated market value of other property.
G Estimated market value of other investments
Insert the estimated market value of other investments.
H Total estimated market value of the fund’s gross assets at the end of the financial year (labels A to G)
Insert the total estimated market value of the fund’s gross assets at the end of the financial year – that is, the total of labels A to G.
17 Liabilities
I Borrowings
Insert the amount the fund has borrowed and not repaid.
The ancillary fund guidelines allow the trustee to borrow money or maintain an existing borrowing of money only in certain circumstances. The total borrowing is limited to 10% of the market value of the fund's assets and the period of the borrowing is also limited.
However, the transitional rules do allow a former PPF that has an existing borrowing at 30 September 2009 to maintain it, but it may not alter the terms of the borrowing without prior agreement of the Commissioner.
For more information, refer to private AF guidelines 33 and 60 and public AF guideline 33.
J Other liabilities
Insert the amount – that is, the total of other liabilities that are not borrowings.
Other liabilities may include those for accrued leave or rent that would usually be evidenced in writing – for example, accrued leave would be recorded in the accounts or ledgers and an agreement to pay rent would have an executed lease of premises.
K Total liabilities at the end of the financial year (totals of labels I to J)
Insert the total amount of liabilities at the end of the financial year – that is, the total of labels I to J.
18 Estimated market value of the fund’s net assets
Under the ancillary fund distribution rules, the trustee will use the estimated market value of the fund's net assets at the end of the financial year to calculate what must be distributed in the next financial year.
L Estimated market value of the fund’s net assets at the end of the financial year (label H less label K)
Insert the estimated market value of the fund’s net assets at the end of the financial year – that is, label H less label K.