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  • Section E: Market value of the fund's net assets at the end of the financial year

    12 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 at least annually.

    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 us.

    Estimates of the market value of assets that are land, including buildings, must be made by a certified and independent valuer or by us.

    Show whole dollars only, do not include cents.

    Next step:

    • Get a Request for valuation form from our not-for-profit information line by phoning 1300 130 248.

    See also:

    A – Cash

    Insert the value, in Australian currency, of all cash held and term deposits held (including accounts with any Australian financial institutions).

    B – Market value of shares in a publicly listed entity

    Insert the market value of shares and equities that are held within Australia and traded on Australian stock exchanges.

    This category relates to shares, equities and similar financial contracts that are traded on Australian stock exchanges, excluding debt securities. Show investments in listed trusts here.

    C – Market value of shares in an unlisted entity

    Insert the market value of shares that the ancillary fund held within Australia that are not listed on Australian stock exchanges.

    This category refers to shares, equities and similar financial contracts that are not listed on Australian stock exchanges but are located in Australia. Show investments in unlisted trusts and managed funds here.

    D – Loans

    Insert the amount that the fund has loaned that has not been repaid.

    E – Market value of land, buildings and any other assets

    Insert the market value of land, buildings and any other assets.

    F – Total market value of the fund’s gross assets at the end of the financial year (labels A to E)

    Insert the total market value of the fund’s gross assets at the end of the financial year – that is, the total of labels A to E.

    13 Liabilities

    G – Borrowings

    Insert the amount the fund has borrowed and not repaid. Show whole dollars only, do not include cents.

    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.

    For more information, refer to private AF guideline 21 and public AF guideline 33.

    H – 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.

    I – Total liabilities at the end of the financial year (totals of labels G to H)

    Insert the total amount of liabilities at the end of the financial year – that is, the total of labels G to H.

    14 Market value of the fund’s net assets

    Under the ancillary fund distribution rules, the trustee will use the 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.

    J – Market value of the fund’s net assets at the end of the financial year (label F less label I)

    Insert the market value of the fund’s net assets at the end of the financial year – that is, label F less label I. Show whole dollars only, do not include cents.

    Last modified: 09 Jul 2021QC 66333