Hello Sarah
Thanks for your questions.
Whilst I appreciate there might be some ambiguity about whether the investment is in a Managed Investment Scheme (‘MIS’) or not, assuming that this matter does not pertain to existence or valuation I don’t think it needs to be reflected in a Part A modification (unless the investment has been disclosed in the accounts as an investment in a MIS).
In relation to the valuation of the investment, is the $12,000 “discount” an illusory marketing gimmick or did other parties actually pay $400,000 for the same investment at or about the same time the SMSF acquired its rights under the contract it entered into?
If no one else actually paid $400,000 to buy into the same investment I would be inclined to suggest the investment should be valued at the purchase price.  It is noted that the purchase occurred in the FY2025 year.
Is there a secondary market where investors can sell their interests to other parties? If so, were there any such transactions at or near 30 June 2025? If there was, such information could be used to determine the valuation of the SMSF’s investment at year end (assuming the investments sold are comparable to the SMSF’s).
Best regards
The Auditors Institute