|
|
|
Junior Member
Group: Forum Members
Last Login: 17/11/2008 8:46:52 PM
Posts: 3,
Visits: 39
|
|
| I am trying to reconcile the pre and post roll income tax treatments in the respective P&L. Is there a a sequence of transactions that I need to follow. I am particularly keen to understand how the Taxable adjustment is determined.
|
|
|
|
|
MySF Administrator
Group: Administrators
Last Login: Yesterday @ 8:08:32 PM
Posts: 293,
Visits: 390
|
|
Hi,
I am not sure I completely understand your question. The P&L from immediately before rollover and during rollover will differ in two areas: capital gains adjustment (if any) and increase in market value.
Capital gains are adjusted by offsetting losses and gains incurred under the 1/3 rule and re-splitting the remainder according to the 1/3 rule. This happens because the processes during the year treat each sale in isolation, so the losses need to be offset at the end of the year.
Increases in market value for the current financial year need to be recognised as income during year end. Therefore, if there has been an increase in the market value of assets then that will be recorded as income which also affects the P&L.
Please let us know if this helps.
Regards,
MySF
|
|
|
|
|
Junior Member
Group: Forum Members
Last Login: 18/10/2008 3:12:58 PM
Posts: 8,
Visits: 21
|
|
| The change in market value appears to be in the Balance Sheet (Equity), but not in th P&L. My accountant has included it in P&L to derive members position, but MYSF aooears not to do so. I guess I am missing something, but what?
|
|
|
|
|
MySF Administrator
Group: Administrators
Last Login: Yesterday @ 8:08:32 PM
Posts: 293,
Visits: 390
|
|
The balance sheet reflects the cumulative unrealised gains or losses from changes in market value of assets. The profit an loss from the year end process reflects the same information for the past financial year only.
Please let us know if this information helps.
Regards,
MySF
|
|
|
|