SMSF managers must prepare annual financial accounts and statements including a valuation of any property assets to confirm a fund has complied with ATO regulations and relevant super law.
When it comes to valuing real property assets, the two most important considerations for trustees are the valuation approach adopted and the timing of the assessment. Having objective and supportable data demonstrating market value and the valuation methodology used will enable compliant reporting.
The ATO recommends funds consider the use of a qualified independent valuer if either the:
- value of the asset represents a significant proportion of the fund’s value
- nature of the asset indicates that the valuation process is likely to be complex or difficult
- occurrence of a significant event which may include macro-economic events, market volatility or a natural disaster has occurred. COVID-19 is being considered a significant event and trustees are recommended to take this into consideration when preparing their financial reports.