An accumulation fund, or defined contribution fund, is a fund which is not a defined benefits fund.^[84] The benefits payable to members on satisfying a condition of release in an accumulation fund are determined by the accumulated contributions made to the fund and the investment income thereon, as well as any insurance benefit available, less any expenses or other deductions.

The requirements for financial reports for a SMSF are set out in the SISA and SISR. In summary, for an accumulation fund, they comprise:

1. a statement of financial position; and
2. an operating statement.

Funds where the benefits are wholly determined by reference to life assurance policies, prepare significantly different financial reports to other SMSFs. Guidance on these reports is provided in the SISR.^[85] This Guidance Statement does not deal with the audit of these funds.

Typical account categories in an SMSF’s financial report include:

• Assets:
  • Cash and cash equivalents;
  • Investments;
  • Receivables; and
  • Prepayments.
• Liabilities:
  • Tax liabilities (current and deferred);
  • Accounts payable and accruals;
  • Borrowings, including limited recourse borrowing arrangements;
  • Accrued benefits; and
  • Vested benefits (disclosed in the notes to the financial report).
• Reserves
• Revenue:
  • Investment revenue, including changes in net market values;
  • Proceeds from insurance policies; and
  • Contributions and transfers in.
• Expenses:
  • General administration expenses;
  • Tax expenses; and
  • Benefits paid.

Guidance on auditing each of these balances and transactions is provided in paragraphs 181 to 253, and illustrative financial audit procedures are also provided in Appendix 4 of this Guidance Statement.