Other assets owned by an entity 043-04060050

An asset of a designated entity is any asset (excluding exempt assets and excluded assets), whether fixed or financial that the entity wholly or partially owns. The value of the assets of a designated entity is determined by the current market value less any allowable liabilities.

Generally, the starting point for the assessment of a trust or company's assets is the entity's balance sheet amounts. In most cases, the balance sheet figures contained in the trust or company's most recently completed annual financial statements and taxation return can be used.

Assets should be assessed at their current market value. Where necessary, Centrelink will obtain valuations from an approved valuer. This cost is met by Centrelink.

Plant and equipment and motor vehicles are usually recorded on the balance sheet at the depreciated value. It may be necessary to update the value recorded to reflect the current market value. Livestock may be recorded at an average cost. It may be necessary to update the value recorded to reflect the current market value of the livestock.

Borrowing costs and formation expenses are not included as assets and should be removed from the assessment of the entity assets. It is the view of the Department of Social Services (DSS) that formation expenses are an amount spent that would be unlikely to be recovered if the assets of the entity were sold or if the entity itself were sold. The same rationale applies to borrowing costs.

Liabilities of trusts and companies may not necessarily be recognised or allowed as a liability of a trust or company.

Each entity should be indexed and have its own record to code information on.