Value the fund's assets

You need to value the assets of the fund at their market value for the purpose of preparing your fund's accounts, statements and the SMSF annual return.

Market value is the amount that a willing buyer of the asset could reasonably be expected to pay to acquire the asset from a willing seller if all the following assumptions were made:

  • that the buyer and the seller dealt with each other at arm's length in relation to the sale
  • that the sale occurred after proper marketing of the asset
  • that the buyer and the seller acted knowledgeably and prudently in relation to the sale.

Apart from preparing your annual accounts, you will also need to value assets:

  • if your fund has investment dealings with, or sells assets to, a related party
  • if you need to determine the percentage of in-house assets in your fund
  • on the commencement day of a pension
  • if your fund transfers a collectable or personal use asset to a related party – in this case the valuation must be done by a qualified independent valuer.

See also:

Last modified: 16 Jun 2015QC 42472