• Section B: Estimated market value of the fund’s net assets at the end of the previous financial year

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    This section allows you to insert details of the estimated value of the fund's net assets at the end of the previous financial year.

    7 Estimated market value of the fund's gross assets

    The market value of the fund’s assets must be estimated in accordance with the ancillary fund guidelines and any other directions from the Commissioner of Taxation.

    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 current at 30 June 2012.

    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.

    Further information

    For more information, refer to private AF guidelines 20 to 23 or public AF guidelines 20 to 23.

    End of further information

    A Estimated market value of the fund's gross assets at the end of the previous financial year

    Insert the estimated market value of the fund’s gross assets at the end of the previous financial year.

    8 Liabilities

    Insert the liabilities at the end of the previous financial year.

    B Borrowings

    Insert the amount the fund had borrowed and not repaid at the end of the previous financial year.

    The ancillary 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 our prior agreement.

    Further information

    For more information, refer to private AF guidelines paragraphs 33 and 60 or public AF guideline paragraph 33.

    End of further information

    C Other liabilities

    Insert the amount that is the total of other liabilities at the end of the previous financial year. Do not include 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.

    D Total liabilities at the end of the previous financial year (total of labels B to C)

    Insert the total liabilities at the end of the previous financial year – that is, the total of labels B to C.

    9 Estimated market value of the fund's net assets

    E Estimated market value of the fund's net assets at the end of the previous financial year (label A less label D)

    Insert the estimated market value of the fund’s net assets at the end of the previous financial year – that is, label A less label D.

    Last modified: 14 Jun 2013QC 35085