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  • Preparing to lodge your SAR – valuing your assets

    There are a few tasks you need to complete before you can lodge your self-managed super fund (SMSF) annual return (SAR). These tasks can take time so it's a good idea to get them done early to help take the stress out of lodging your SAR by the due date.

    One of these tasks is completing a valuation of your assets as at 30 June for the year you are lodging.

    Asset valuation is a key component in preparing meaningful SMSF financial reports and each year you need to value the assets of the fund at their market value.

    What is market value?

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

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

    Who can do a market valuation?

    In most cases a trustee can perform the valuation. We have published valuation guidelines for you to follow. They explain our approach to valuation, the terms we use and general valuation principles.

    The important thing in all cases is the person who conducts the valuation must base their valuation on objective and supportable data.

    In some circumstances you will need to engage a qualified independent valuer, for example if your fund transfers a collectable or a personal use asset to a related party.

    It is important to have the valuation done early as you will need it for the purpose of preparing your fund's accounts and financial statements. It is advisable to have these ready by the time you appoint an auditor. It will make their job easier and it's likely to reduce the time they take to complete the audit.

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      Last modified: 20 Nov 2020QC 64199