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We recently have a Fund which invests in a unrelated unit trust. The unit trust runs a drive-thru restaurant. In terms of the valuation, the client does not intend to get an external valuation due to the high costs. The unit trust holds some cash balance and a lease so we are not sure if the net asset value in the unit trust's financial reports can be used for the valuation of the investments. What are considered as sufficient audit evidence in this case? If the Trustee would like to provide a Trustee Valuation, what documents and information do the Trustees need to provide?
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Would think there would be some goodwill value making NTA not suitable. Trustee could do a ROI calculation to determine value. I would accept that given the lack of anything else available.