Assets-balance sheet-trusts laws and accounts, Financial Accounting

1) The classification of investments in the Balance Sheet will be under a few broad headings with schedules listing the individual assets. Where the Trustees Act has been applied all investments must be clearly allocated to their appropriate fund;

2) Unauthorised investments held under a power of postponement should be separately shown;

3) The book value of investments will be as follows:

  • Devolving on trustees as part of deceased's estate - PROBATE VALUE;
  • Part of a gift by a living settlor - MARKET VALUE at date of gift;
  • Purchased by trustees - COST


4) Revaluation of investments will normally take place in the following circumstances;

  • Where trustees decide to apply provisions of Trustee Act;
  • Distribution to a beneficiary under the trust instrument.

 5) Cash and bank balances should be distinguished between income and capital.

Posted Date: 12/15/2012 12:42:14 AM | Location : United States

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