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Auditing a fund that holds 4 Argyle pink diamonds. The valuation I have been provided with is showing as insured replacement value resuling in these diamonds representing 42% of the total fund assets. If this a valid valuation to use? I would have thought market value may be significantly different, particularly given the rarity of the asset.
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Hi Lynda
I have no knowledge of these diamonds so hard for me to comment in terms of what valuation method should be used. I would have thought you would need to go to an independent diamond expert to obtain a valuation that an auditor could rely upon.
An article from Seamless Super suggests that they may be collectables so you will need to follow the relevant rules if applicable, refer:
https://www.seamless-smsf.com.au/pink-diamonds-collectable-or-precious-metal/
If other forum members have experience in diamonds and valuation approach please let the forum know.
Thanks
SMSF AAA