Steps to assess an interim balance sheet 043-03080050
Expand allThis document outlines the steps required to assess an interim balance sheet provided by a customer for a business in which they have an interest.
Purpose of the interim balance sheet
Centrelink requires an interim balance sheet to assess assets of a business for a customer when they are claiming a pension, benefit or allowance. A balance sheet provides a snapshot of the financial position of an entity at a point in time, showing the values of the assets and liabilities of the business at a particular date. Note: customers must also provide a profit and loss statement.
Service Officers and Complex Assessment Officers (CAOs):
- are not expected to fulfil the role of accountants for customers, and
- should not attempt to undertake the calculation of the net value of a business from the books of accounts
Contents of the interim balance sheet
Items that need to be checked and/or adjusted include:
- assets exempt from assessment
- that the values on the balance sheet are the current market value of assets
- no double counting of assets - where an asset is counted as both a personal asset of the customer and as an asset of the business
- an excluded security
- apportionment of liabilities secured over both exempt and assessable assets
- aggregation of primary production assets and liabilities
Service Officers and CAOs must use the correct date of event for business income and assets.
Related links
Assets and liabilities of a business
Coding income and assets for Centrelink payments and services
Primary production aggregation
Assessing and recording loans and liabilities for trusts and companies
Assessment of assets for trusts and companies post 1 January 2002
Assessing and coding the Business details for sole traders and partnerships MOD F