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
1. Lease vs. Buy Trasky Company is trying to decide whether it should purchase or lease a new automated machine to be used in the production of a new product. If purchased, the

Open "Hoyle CPA: Earnings Per Share." Under "Free Questions" select "Financial Accounting & Reporting."

Q. What is Amount per share? Par Value - Amount per share set in ARTICLES OF INCORPORATION of a CORPORATION to be entered in CAPITAL STOCKS account where it's left permanently

1.  The average annual investment cost of a workstation in New Jersey has been calculated to be $100,000.  It has been calculated to be $150,000 in Kentucky.  The hourly cost at a

Q. Illustrate Accounting ramifications? Accounting ramifications i) Restatement ii) Unable to file on timely basis while go back and determine what periods are effected

You will gain welfare from consuming bread and chocolate. Your welfare is described numerically by W = 4B + 2C, where B denotes the quantity of bread you choose to consume, and C d

IDEAL MINORITY INTEREST The minority interest ideally is entitled to the profit after tax in minority interest. However due to consolidation, the profits of the subsidiary compan

Q. Stock dividends and stock splits have the following effects on retained earnings: Stock Splits Stock Dividends a. Increase No change b. No change Decrease c. Decrease Decrease d

Mr. Surya does not keep a systematic record of his transactions. He is able to give you the following information regarding his assets and liabilities. 2000 2001 Dec. 31 Dec. 3

Sigma is thinking about purchasing a new clam digger for $14,000. The expected net cash flows resulting from the digger are $9,000 in year 1, $7,000 in year 2, $5,000 in year 3, an