1. Valuations and changing exchange rates

2. AUD Exchange Rates since 2000

3. Case Study 1 Mr Green purchased a rare book from an American dealer on 1 July 2000 for US $27,000. He wishes to make a CGP donation to an Australian library on dated 1 March 2015. Since 2000, there has been a modest but steady increase in the value of the book in U.S. and U.K. markets.

4. Comparable Sales note: converted at exchange rate as at date of sale

5. Comparable Sales note: converted at exchange rate as at date of valuation

6. GST considerations On arrival in Australia, the book attracted 10 % GST calculated on AU$41,100, ie. $4,100 Therefore his total purchase price was AU$45,100

7. CGP forms state that the sales prices quoted must be GST inclusive Thus in the scenarios given above, the CGP valuation should either be: $36,500 + 10% = $40,150 or $45,000 + 10% = $49,500

8. Case Study 2 Mrs White, a wealthy collector and generous donor to a particular Australian institution. Mrs White died in 2012 and her children decided to donate her entire collection as a CGP to her preferred Australian institution in 2013. Donation included one painting purchased in London for £100,000 or AU$285,000. There was also GST paid on landing in Australia, giving a total of $314,250.

9. Sale of comparable painting note: converted at exchange rate as at date of sale

10. Sale of comparable painting note: converted at exchange rate as at date of valuation 1 July 2013 Place and date of salePrice including buyer’s premium Converted to AUD Mrs White’s purchase at Christie’s 2001£100,000$161,000 Comparable painting sold Sotheby’s 2010£100,000$161,000 CGP Valuation Valuer 2$161,000

11. GST Considerations Valuer 1 argued that 10% GST was applicable. Their final valuation was $250,250. Valuer 2 didn’t add GST. Their final valuation was $161,000.

12. Exchange Rate Discussion Points Managing donor expectations Managing Auditor expectations