Asset valuation is a key responsibility as part of SMSF financial reporting, and the ATO is reminding SMSF auditors of their obligations to verify asset values or risk breaching their duties.
Under regulation 8.02B of the Superannuation Industry Supervision Regulations 1994 (SISR), assets must be valued at market value in the SMSF’s accounts and statements. SMSF auditors need to obtain sufficient appropriate audit evidence from SMSF trustees to verify the value of a fund’s investments. It is not the auditor’s job to undertake a valuation but they should seek evidence that shows how the asset was valued, including the method used and the data relied upon.
For valuation guidelines for self-managed funds head to the ATO website.
If you are unsure of your obligations and responsibilities as SMSF trustee or auditor, please contact Shane at firstname.lastname@example.org for more information.