BT transferred few managed funds from individual account to SMSF account . And BT statement showing $ 450,020 credits Qty xxxx for managed funds on 27 June 2022 under transaction history ( not cash) .

I have requested the signed off market transfer forms for the managed funds but BT advised they did not need to prepare the form .

Please find Financial adviser's response per below .

• The managed funds were transferred into the SMSF with the intention that the transaction be treated as in specie contributions.

• According to the ATO’s Guidance Statement GS 009 Auditing Self-Managed Superannuation Funds, this transaction is permitted despite the fund being ordinarily prohibited from acquiring assets from a related party because these assets were acquired at market value and are units in widely held unit trusts.

  • See points 352 - 354 on page 82 – 83: Guidance Statement (auasb.gov.au)

• Based on my conversation with Isha, I understand that you want off market transfer forms in order to verify that the assets were transferred at market value.

• The section on Valuation and Allocation of Assets (see page 50) states:

  • The trustee chooses the financial reporting framework under which the SMSF reports

  • The trustee exercises their discretion when determining the most appropriate market value to be applied to each investment of the SMSF

  • Under ASA 800, the auditor’s responsibility is to form an opinion regarding fair presentation in accordance with the identified financial reporting framework or identified basis of accounting.

  • Under ASA 540, the auditor is required to obtain sufficient appropriate audit evidence that fair value measurements and disclosures are in accordance with the SMSF’s applicable financial reporting framework

  • The auditor obtains an understanding of the trustees’ rationale for selecting the basis of determining market value and exercises professional judgement in assessing whether the basis is appropriate given the nature of the asset and the financial and investment markets in which the SMSF operates.

  • The auditor obtains sufficient appropriate audit evidence to support the trustees’ rationale for determining the market value of each asset class.

  • The role of the auditor is to check that assets have been reported at market value, and assess and document whether the basis of establishing market value is reasonable and the valuation is reasonable in light of the SISA, SISR, and ATO guidelines.

• Neither the Guidance statement nor S66 of SIA, regulations 13.22A – D of SISR or the ATO’s Valuation guidelines for self-managed super funds state that off market transfer forms are a requirement.

• The ATO’s Valuation guidelines for self-managed super funds actually states that in the event of an acquisition of an asset from a related party of the fund, the valuation requirement is that the asset is ‘Acquired at market value that is based on objective and supportable data’.

  • See Why assets need to be valued | Australian Taxation Office (ato.gov.au)

My questions are if they cant provide the signed off market transfer form , can I qualify the audit report based on s.35C(2) ?

OR If they provide the individual account of BT showing the managed funds were transferred out ,, this is enough audit documents ?

How to account the contributions amounts when managed funds were out or when managed funds were transferred in ..

I appreciate your reply . Thanks