Asset valuation is a key component in preparing meaningful SMSF financial reports.
A valuation of assets is required to confirm your SMSF has complied with relevant super law for:
- preparing the financial accounts and statements of the fund
- acquiring assets between SMSFs and related parties
- investments made and maintained on an arm’s-length basis
- determining the market value of a SMSF’s in-house assets as a percentage of all assets in the fund
- determining the value of assets that support a member’s super pension, because the value of the property can have a direct affect on the amount of pension that can be withdrawn.
The ATO may review a valuation as part of their compliance process. They may ask you to provide evidence of the valuation method used and confirm that it was based on objective and supportable data.
The ATO and SMSF auditors generally require that property investments held by a SMSF must be valued every three years.
Whilst the valuation does not have to be undertaken by an independent Registered Valuer, SMSF auditors generally prefer a valuation from an independent valuer rather than trustees of the SMSF.
If your accountant or financial planner advises you that you require a valuation to comply with ATO auditing requirements, Northern Rivers Valuations can assist in this process.
The aforementioned information is only general in nature and it is not intended to constitute professional or legal advice. Please contact your accountant, solicitor, financial advisor or relevant government authority for specific advice relating to your situation. See Disclaimer
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25 years local valuation experience