smsf auditor

Self Managed Super funds why use Market Valuations

Australian Taxation Office Superannuation Circular 2003/1

Introduction1. The Australian Taxation Office (ATO) intends that self managed superannuation funds should use market values for all valuation purposes. This includes valuations for determining the purchase price of a pension and the use of market value accounting for all financial statements.2. The purpose of this Circular is to provide the basis for conducting these valuations.

Financial reporting

3. Australian Accounting Standard AAS 25 which applies to reporting entities requires superannuation funds to value their assets at their net market value as at the reporting date. However, most self managed superannuation funds can appropriately be classified as non-reporting entities and therefore not required to comply with this standard.

4. Regardless of this, the Tax Office’s position is that self managed superannuation funds should use market value reporting for their financial statements, even where the auditor has determined that the fund is a non-reporting entity.

5. This view is shared [BH1]by APRA and is set out in their Addendum to Circular No. IV.A.4.

Benefits of market value financial reporting

6. By using market value reporting, self managed superannuation funds will ensure that members’ benefits, as reported in the annual statements, will reflect all market value movements of the reporting period.

7. This consistent accounting approach by all superannuation funds will assist trustees with the investment decisions of the fund by allowing for the comparison of financial statements from subsequent periods and with other superannuation funds. It will also assist trustees to determine whether the mix of investments in the fund is in accordance with the investment strategy.

8. Market value reporting will also allow trustees to easily determine the resources that the fund has available for payment of benefits. For example, if a member was to leave the fund the trustees could easily determine the member’s account balance as at the reporting date.

To read more click here

Posted in SMSF Audit | Tagged Auditor, DIY Audit, Self Managed Superannuation Fund, smsf auditor, trust account auditor

What SMSFs can expect from the 2011-12 compliance program

ATO Commissioner Michael D’Ascenzo launched the ATO’s new SMSF compliance program on 30 June 2011. While ATO continue to work with SMSFs to fix genuine problems, ATO also take firm action, including making funds non-complying, if they commit serious breaches of the rules. This year, ATO SMSF compliance activity will focus on:

newly registered funds, to ensure they have not been established to provide illegal early release (IER) of super funds to their members
funds lodging their first annual return to ensure they are entitled to receive their ‘notice of compliance’
auditor contravention reports
related-party investments, to ensure they are not contravening the 5% in-house asset limit or the prohibition of lending to members
exempt current pension income and non-arm’s length income
re-reporting of contributions and compliance with excess contributions tax release authorities.

Sections within What SMSFs can expect from the 2011-12 compliance program

To read more click HERE

Posted in SMSF Audit | Tagged Auditor, DIY Audit, Self Managed Superannuation Fund, smsf auditor, trust account auditor

SMSF independent auditor’s report 2011

The Self-managed superannuation fund independent auditor’s report (NAT 11466, RTF 345KB) are instructions and a form that you should use if you:

– are an approved auditor, and

– have been appointed by a trustee of self managed superannuation (SMSF) to give a report on the operation of that fund for each income year.

This report applies from 1 July 2011. For an annual audit, this means for audit periods commencing on or after 1 July 2010. You may use this report for audits completed for earlier periods. However, you must take care to comply with the auditing standards and legislation that applied to that period.

There are two new regulations included in the 2011 audit report that Auditor must now sign off . Regulation 1.06(9A) (which requires the minimum pension to be paid at least annually) and reglulation 5.03 (which requiest investment earnings to be allocated to members on a fair and reasonable basis.

Posted in SMSF Audit | Tagged diy super, smsf audit fee, smsf auditor, smsf auditor's report, smsf cost, smsf melbourne, smsf sydney

Setting up SMSF Investment Strategy

The trustees of an SMSF are required to prepare and implement an investment strategy for the superannuation fund. The strategy must reflect the purpose and circumstances of the fund and take into account:

How to maximise member returns while having regard to the risk
Appropriate diversification in a long term investment strategy; and
The ability of the fund to pay benefits as members reach retirement, and other costs incurred by the superannuation fund.

Trustees must make sure all investment decisions are made in accordance with the documented investment strategy of the fund and should seek investment advice or appoint an investment manager in writing if in any doubt.

To Read More Click Link Below

Setting up SMSF Investment Strategy

Posted in SMSF Audit | Tagged smsf audit, smsf audit melbourne, smsf auditor, smsf brisbane

Self Managed Superannuation Funds Collectables

SMSF—investment in collectables and personal use assets.

The regulations may prescribe rules in relation to the trustees of regulated superannuation funds that are self managed superannuation funds making, holding and realising investments involving:

(a) collectables (within the meaning of the Income Tax Assessment Act 1997); or
(b) personal use assets (within the meaning of that Act).

To Read More Click Link Below

EXPOSURE DRAFT – SMSF INVESTMENT IN COLLECTABLES AND PERSONAL USE ASSETS

Posted in Self Managed Super Funds | Tagged smsf audit, smsf audit melbourne, smsf auditor

Self Managed Super funds why use Market Valuations

What SMSFs can expect from the 2011-12 compliance program

Sections within What SMSFs can expect from the 2011-12 compliance program

SMSF independent auditor’s report 2011

Setting up SMSF Investment Strategy

Self Managed Superannuation Funds Collectables

SMSF—investment in collectables and personal use assets.

Audit Fee Quote

Contact Us

Categories

SPAA Specialist Auditor

Pages

Categories

Recent Posts

Join Us On Facebook

Click here to call us now