Accounts under trustee-trusts laws and accounts, Financial Accounting

ACCOUNTS UNDER TRUSTEE

(a) Authorised investments

The investments which trustees are permitted to hold may be specifically stated in the will or deed constituting the settlement. Where the will or deed is silent on the matter, the authorised investments are as provided by statute. The Trustee lays down the scope for trustees' investments but has also introduced safeguards to prevent excessive losses to trust funds from unsuitable investments.

(b) Division of the trust:

The safeguards consist in the division of the trust funds into portions. Before this division takes place, the investments are revalued in order to determine the total value of the funds as at the date of division. Any investments which are acquired or retained under a specific power in the will or settlement are designated as special range property and are kept quite separate from the other investments. 

(c) Fixed Interest Securities: no advice in writing is required before an investment in fixed interest securities is made.
 
1.    Government Securities.
2.    Treasury Bills.
3.    Fixed interest securities guaranteed by the Government

(d) Wider-range Investments:
(requiring advice in writing from a properly qualified person)
 
Quoted shares of a Kenya company with a paid-up capital of not less than Shs10m and has paid dividends on all issued capital for the past five years.

(e) Dealing with changes in the trust:
 
Profits or losses on disposal of investments should be treated as belonging to that part of the fund out of which they accrued. If not applicable to either part, the accrual must be divided between each fund.

Posted Date: 12/15/2012 12:52:28 AM | Location : United States







Related Discussions:- Accounts under trustee-trusts laws and accounts, Assignment Help, Ask Question on Accounts under trustee-trusts laws and accounts, Get Answer, Expert's Help, Accounts under trustee-trusts laws and accounts Discussions

Write discussion on Accounts under trustee-trusts laws and accounts
Your posts are moderated
Related Questions
Define Accruals or accrued charges What are Accruals or accrued charges - Expenses that are done for the current accounting period which have not yet been paid. These are someti


Q. Flexibility in Debt finance? Debt finance is more elastic than equity in that various amounts can be borrowed at a fixed or floating interest rate and for a range of maturit

Errors in Financial Statements The following financial statements are available for Sherwood Real Estate Company: Balance Sheet Assets Liabilities Cash . . . . . . . . . . . . . .

You are the CFO of Diversi?ed Industries. Diversi?ed has suffered through 4 or 5 tough years. This has deteriorated its ? financial condition to the point that Diversi?ed is in dan

Assessment Criteria: Student work will generally be assessed in terms of the following criteria: 1. Preparation of correct journal entries. 2. Accumulation of journal entr

Corporation Tax This is the tax payable by companies on their trading activities of a given financial period. The standard doesn’t give the guidelines on how this tax should be

The following information is available for Mehring Corporation for the year ended December 31, 2012: Collection of principal on long-term loan to a supplier


how to do the calsulations for bad debts