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
A HEALTH SAVINGS ACCOUNT AT FRONTLINE PR Susan Berry just returned from a national conference on compensation and benefits where she attended a session on Health Savings Accou

What Accounting method (cash or accrual) would you recommend for the following businesses? a. A gift shop with average annual gross receipts of $900,000 b. an accounting partnershi

Americans With Disabilities Act - ADA  legislation passed in 1990 that bans discrimination against people who are having disabilities. According to this Act, discrimination against

Explain:- Q.1 Explain the ways in which the needs of internal and external users of accounting information are the same and different. Q.2 Why is it important for financial sta

SECTION B QUESTION 2: Two companies Juk Ltd and Roop Ltd operate in the tourism sector. Financial forecasts are provided below: Income Statement for yea

Craig's Cars has assets of $4,550 and stockholders' equity of $3,200. What is the amount of liabilities? What is the amount of claims?

Accounts of trustees The trustee must keep proper books of account, which may be inspected by the creditors at any time. The cash book must be audited by the committee of insp

Q. Evaluation of Net working capital? The evaluation presumes that several key variables will remain constant such as the inflation rates, discount rate and the taxation rate.

Prospective Financial Information (forecast and projection) - Forecast: Prospective financial statements which present, to the best of responsible party's knowledge and belief, an