Description
The role and understanding of Valuation Methodologies for small to medium business entities.
In the course of determining income tax liabilities, it is it often a requirement to assess and value a ‘business’ or transaction for the purposes of respective income tax requirements. Examples of such requirements may include:
- Entity valuation for consolidation purposes.
- Transactional value for the issue of equity to related parties.
- Use of an asset for private purposes.
- Most critically, the value of a business (assets or an entity) when an entity acquires or disposes of a business.
- The valuation of assets for the purposes of determining the final balance sheet position in an SMSF for year-end audit.
The ATO adopts and applies comprehensive valuation methodologies when considering the ‘value’ of assets or entities subject to a transaction. Another common issue is the valuation of assets/investments during the audit process of an SMSF which must now be completed on an annual basis.
Recorded on Friday, 7 October 2022.
Presented by Lachie McColl
1 CPD Hour
