Simply SMSF Audits – Professional SMSF Audit Services

Simply SMSF Audits

Independent SMSF Auditing: Delivering Trusted and Professional Services

Introduction to Asset Valuations in an SMSF

Self-managed super fund (SMSF) trustees must ensure that their fund's assets are valued at market value each financial year. This annual valuation forms a crucial component of preparing the SMSF's financial accounts and statements.

Importance of Valuing Assets at Market Value Annually

A critical mandate is that trustees ensure all assets are valued at market value EACH year. This requirement enforces an accurate reflection of the SMSF's financial position, impacting the members' entitlements and ensuring compliance with regulatory standards.

​Substantiating the Market Value of Real Property

Necessity for Fresh Valuation

Given that real property valuations change annually, prior independent qualified valuations are no longer valid in the following year. The ATO mandates that trustees obtain a fresh valuation each year based on the criteria above.

Substantiating the Market Value of Real Property

Trustees should consider a variety of sources to substantiate the market value of real property. A single item of evidence is generally insufficient. Possible evidence could include comparable property sales, recent property purchase price (under specific conditions), independent appraisal from a real estate agent, improvements to the property, rates notice, and net income yields for commercial properties.