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

Last updated 12 February 2019

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 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 ATO.

Show whole dollars only, do not include cents.

See also:

Next step:

  • Get a Request for valuation form from the ATO’s not-for-profit information line by phoning 1300 130 248.

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 guidelines 33 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.

Section F: Information relating to entitlement to endorsement

This section allows the trustee to advise us on some governance issues.

Insert X in the Yes or No box, where applicable.

All ancillary funds must complete all questions.

A – Have the fund's financial statements been audited or reviewed?

Each financial year the trustee must arrange for an auditor or reviewer to audit the financial statements of the fund.

An ancillary fund with revenue and assets of less than $1 million in a particular financial year may have its financial statements reviewed rather than audited, unless:

  • the Commissioner advises otherwise
  • your trust deed requires an audit.

A reviewer must meet the requirements provided in private ancillary fund guidelines - guideline 28.1A.1 or public ancillary fund guidelines - guideline 28.2.1. An auditor must meet the requirements provided in private ancillary fund guidelines - guideline 28.1 or public ancillary fund guidelines - guideline 28.1.

The audit or review must be finalised before the fund is required to lodge the return.

For more information, refer to private ancillary fund guidelines - guidelines 26, 27 and 28 and public ancillary fund guidelines - guidelines 26, 27 and 28.

B – Has the Commissioner been advised of any changes to the fund's governing rules?

The trustee must let us know within 21 days of any change in the fund's deed or will, using the approved form:

See also:

C – Has the fund entered into a financial dealing with a person or entity associated with the founder or trustees of the fund?

Dealings (except by way of gift), with a founder donor, trustee, director, officer, agent, member or employee of the trustee, or an associate of these entities must be at arm's length or on terms more favourable to the fund than would otherwise be expected under an arm's length transaction.

See also:

D – Has the fund’s auditor or reviewer confirmed compliance with the AF guidelines relating to the relevant reporting period?

Each financial year the trustee must arrange for an auditor or reviewer to audit compliance with the guidelines by the fund and the trustee.

An ancillary fund with revenue and assets of less than $1 million in a particular financial year may have its compliance with the guidelines reviewed rather than audited, unless:

  • the Commissioner advises otherwise
  • your trust deed requires an audit.

The reviewer must meet the requirements provided in private ancillary fund guidelines - guideline 28.1A.1 or public ancillary fund guidelines - guideline 28.2.1.

The audit or review must be finalised before the date the fund is required to lodge the return.

See also:

E – Does the fund maintain a current written investment strategy?

An AF trustee must prepare and maintain a current investment strategy for the fund that sets out the investment objectives of the fund and details the investment methods the trustee will adopt to achieve those objectives.

The investment strategy (and a record of the associated decision-making processes) must be available in a written form so that the trustee, an auditor, a reviewer, or the Commissioner can determine whether the fund has complied with the AF Guidelines.

See also:

F – Did the fund wind up or cease to be a public or private AF?

If the AF was wound up or ceased to be a public or a private AF during the financial year, it must include the audit or review report when it lodges the ancillary fund return 2017.

QC56961