Trust AFS - CPD Consortium

Speakers

• Speaker 1 0:00
• Speaker 2 7:44
• Speaker 3 58:49

1. 0:00

   Chapter 1: developing a set of financial statements that hopefully can answer all those questions or provide that insight and information to solve so that you don't then sit with additional queries or please provide the following information. 299s · Speaker 1

   developing a set of financial statements that hopefully can answer all those questions or provide that insight and information to solve so that you don't then sit with additional queries or please provide the following information. So, as I…

2. 5:00

   Chapter 2: And the distributions to beneficiaries is separate then from how well the portfolio manager is doing and all the assets and administration. 164s · Speaker 1

   And the distributions to beneficiaries is separate then from how well the portfolio manager is doing and all the assets and administration. So as I say, it deals with the historic information, having a look at the cost to cost. It doesn't n…

3. 7:44

   Chapter 3: from within the family members as to who's actually getting what. 301s · Speaker 2

   from within the family members as to who's actually getting what. With regards to the accountability to beneficiaries, I'm actually dealing with that matter now at the moment as to whether the beneficiaries have actually got a right to actu…

4. 12:48

   Chapter 4: For whom are they prepared? 69s · Speaker 1

   For whom are they prepared? As I said, it's for your beneficiaries and you've got your income and your capital beneficiaries. And there's obviously a distinction between distributable income, which comes from your income sources, and then y…

5. 13:59

   Chapter 5: put in the details as to how we are accounting for obviously the standard as such but then in our trustees report we would then put in as a note what the trustee strategy is with regards to the split or the focus between income and capital beneficiaries. 318s · Speaker 2

   put in the details as to how we are accounting for obviously the standard as such but then in our trustees report we would then put in as a note what the trustee strategy is with regards to the split or the focus between income and capital …

6. 19:18

   Chapter 6: We have got instances where it's just a property without the bank account and we just carry forward essentially a dormant set of financial statements, but with the full complement as to what a dormant set, a full complement in terms of the standard as to what we have for a dormant set of financials or a property holding company as such. 296s · Speaker 1

   We have got instances where it's just a property without the bank account and we just carry forward essentially a dormant set of financial statements, but with the full complement as to what a dormant set, a full complement in terms of the …

7. 24:18

   Chapter 7: So then the next question comes on the basis of. 299s · Speaker 2

   So then the next question comes on the basis of... What is the report from an accounting perspective? What report do you prepare? Compilation report, independent review or an audit? So unlike companies where you've got the point system and …

8. 29:19

   Chapter 8: Our starting point with regards to the index as such, and I just want to, this is an index of the summary that we put in. 189s · Speaker 1

   Our starting point with regards to the index as such, and I just want to, this is an index of the summary that we put in. And yes, as much as I've said, that are necessary cash flows. I grew up in the era where we had, it wasn't a cash flow…

9. 32:29

   Chapter 9: In instances, we would then itemise the detail of the individual beneficiaries to whom income and capital gains have been distributed. 302s · Speaker 2

   In instances, we would then itemise the detail of the individual beneficiaries to whom income and capital gains have been distributed. Let's go through the general information. We start on the basis of country of incorporation, South Africa…

10. 37:32

    Chapter 10: And those, at the end of the day, as I said, identify what is those that are carved out in terms of 7C because they are vested income but unpaid at the end of the year. 222s · Speaker 1

    And those, at the end of the day, as I said, identify what is those that are carved out in terms of 7C because they are vested income but unpaid at the end of the year. But the repayment thereof, as I said, remember, must be at the discreti…

11. 41:16

    Chapter 11: In our Excel sheet, we run a fixed asset register for investments on the basis of opening balance, plus or minus. 321s · Speaker 2

    In our Excel sheet, we run a fixed asset register for investments on the basis of opening balance, plus or minus. sell corporate actions, put in the rated average base cost. You could have some, and so that was the second one. The second in…

12. 46:39

    Chapter 12: the one consolidated or the total figure, because again, in our notes, we would then say distributions paid, Johnny interest, Johnny rental, Mary interest, Mary capital gains for argument's sake. 318s · Speaker 1

    the one consolidated or the total figure, because again, in our notes, we would then say distributions paid, Johnny interest, Johnny rental, Mary interest, Mary capital gains for argument's sake. And then in the notes to the financial state…

13. 51:58

    Chapter 13: you can then still do a 20,000 distribution of the capital amount and we do it then as a record. 118s · Speaker 1

    you can then still do a 20,000 distribution of the capital amount and we do it then as a record. So although it's an accounting transaction and there might not necessarily be cash movement as such, it's documented as such and IT 144 is prep…

14. 53:58

    Chapter 14: by resolution passed by the trustees at the end of the year, and then obviously have that resolution to back it up. 290s · Speaker 2

    by resolution passed by the trustees at the end of the year, and then obviously have that resolution to back it up. Now, I know we've dealt with distributions in the trust administration side. That resolution, it can either be done on the b…

15. 58:49

    Chapter 15: with the markets where it is and I'm not an investment advisor, maybe this is an opportunity to just have a look at your cost benefits as far as trust is concerned for your client. 173s · Speaker 3

    with the markets where it is and I'm not an investment advisor, maybe this is an opportunity to just have a look at your cost benefits as far as trust is concerned for your client. So quickly then, you've then got your clear disclosure requ…

16. 1:01:42

    Chapter 16: and you quickly need somebody to sign the financials so that you could submit them with a tax return by due date. 307s · Speaker 2

    and you quickly need somebody to sign the financials so that you could submit them with a tax return by due date. Again, it's on a case-by-case basis. In some instances, all of our trustees sign the financial statements. In other instances,…

17. 1:06:51

    Chapter 17: founder funding. 68s · Speaker 1

    founder funding. So in other words, somebody sets up the trust, puts in 20 million, that money goes into the market, wall breaks out, and then that within a short period of time, that investment's now 15 million. You've got a liability of 2…

18. 1:08:00

    Chapter 18: put it in as to, and we do, we would then put in their founder, trustee and beneficiary. 306s · Speaker 2

    put it in as to, and we do, we would then put in their founder, trustee and beneficiary. I've left this slide in from a previous webinar that we did just to give you the dates and the deadlines. I did check just before we went in. I still d…

19. 1:13:08

    Chapter 19: Can it be requested from the accountant? 304s · Speaker 2

    Can it be requested from the accountant? Do we as accountants have authority to release the financial statements? Cheryl, my view is this is squarely a trustee responsibility. Totally. And to that extent, I would then ask the, I mean, I had…

20. 1:18:13

    Chapter 20: Awesome. I saw a question a lot of times that trustee defines trust capital to include net income not distributed to beneficiaries in that year. 67s · Speaker 1

    Awesome. I saw a question a lot of times that trustee defines trust capital to include net income not distributed to beneficiaries in that year. Cheryl, when I thought about that, when I first read it, I read it incorrectly. But for me, whe…

21. 1:19:21

    Chapter 21: We end up putting the vested income at the discretion of the trustees goes part of trust capital. 305s · Speaker 2

    We end up putting the vested income at the discretion of the trustees goes part of trust capital. Because if we have to wind that down, that's got to be then settled. The other vestings, no, it is. It still then goes. I mean, we end up putt…