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Feb 24, 2023

Frozen Asset

in SMSF Technical Forum

Hi, Fund has an investment in a managed fund - the investment itself has been frozen by ASIC due to an investigation into the broader group. The question is

How to establish the market value of the asset at year end if the asset is frozen? The client is wondering this not only to fulfil the valuation requirements but also to confirm the pension payable for the current FY.

There is no indication either way that the assets are potentially lost, its a temporary problem.

1 answer0 replies

Comments (1)

THE AUDITORS INSTITUTE

Feb 24, 2023

Hi T

Thanks, you could possibly use the price prior to it being frozen. This is on the basis that you have noted that it is a temporary problem.

It will depend in part on the value and materiality of the asset and the information that you can obtain to support a valuation as at 30 June 2022. This could lead to possibly a Part A and or Part B audit report qualification.

Thanks

SMSF AAA