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Market value method or cash surrender value

Last updated 26 May 2005

If you use the market value method or the cash surrender value method, make and keep records showing how you worked out:

  • any FIF income that you accrued or FIF loss that you incurred from an interest in a FIF or an FLP for the current period
  • any FIF loss that you incurred from the interest in the FIF or the FLP for the previous periods that has not been used to reduce income. [sections 616 or 619]

Also keep records relating to:

  • the market value of your interest in the FIF on the last day of the notional accounting period or the cash surrender value of your interest in the FLP on the last day of the notional accounting period
  • distributions received from the FIF or the FLP
  • disposal of interests in a FIF or an FLP
  • market value of your interest in the FIF or the cash surrender value of your interest in the FLP at the commencement of the notional accounting period, and
  • acquisition of interests in a FIF or an FLP.

You also need to keep details of how you worked out the market value or cash surrender value.

If you used the market value method, keep a record of the following.

  • If the market value is based on a quoted value on a stock exchange, record the quoted price, the date quoted, the class of interest - share - and the name of the stock exchange.
  • If the market value is based on a buy-back or redemption price, record details of the offer of the buy-back or redemption price.

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