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Master Member
Group: Forum Members
Last Login: Today @ 5:08:28 AM
Posts: 111,
Visits: 1,919
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Hi,
I've been trying to make sense of the "Vested Benefits" figure in Note 6 of the account notes. I thought the vested benefits were basically the members benefits.
I missed it at the time, but for the 2006-2007 year (our first year) the year end balance sheet showed Members Equity of $1,720,955.18 whereas Note 6 said:
Vested Benefits $0.00
Now, for the 2007-2008 year, the year end balance sheet shows Members Equity of $1,914,303.04 whereas Note 6 says:
Vested Benefits $1,718,258.13
- which seems to be the 2007 Members Equity of $1,720,955.18 less the 2008 deferred tax liability of $2697.05.
This doesn't make sense to me. Either:
1) If the vested benefits show the members benefits at the END of the year (that the notes apply to) then I would see:
2006-2007 Vested Benefits $1,720,955.18
2007-2008 Vested Benefits $1,914,303.04
Alternatively:
2) If the vested benefits show the members benefits at the START of the year (that the notes apply to) then I would see:
2006-2007 Vested Benefits $0.00 (as WAS shown)
2007-2008 Vested Benefits $1,720,955.18
The 2007-2008 tax deferred liability of $2697.05 is already applied to the 2007-2008 Members equity (in Income Tax - Preserved) and is not relevant to the 2006-2007 members equity so, as I say, I cannot see where the Vested Benefits $1,718,258.13 figure (shown in Note 6 for 2007-2008) comes from.
I would have thought that 1) applied (in which case the note seems wrong for both years) but even if 2) applied the note seems wrong for the 2007-2008 year.
Could you please clarify how the "Vested Benefit" figure is calculated.
Regards
Neil H.
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MySF Administrator
Group: Administrators
Last Login: 4/11/2010 3:24:01 PM
Posts: 464,
Visits: 633
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Hi,
The vested benefits figure shown in the Notes to Accounts section in the report will be updated in the next version of MySF Manager.
More information will be posted here regarding this issue as it becomes available.
Regards,
MySF
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Master Member
Group: Forum Members
Last Login: Today @ 5:08:28 AM
Posts: 111,
Visits: 1,919
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Hi,
OK, that's good.
In the meantime, if I need to manually edit the notes, what figure should be used.
I don't mean the specific figure for my fund, but what formula do you intend to use when you update MySF - how will you calculate the vested benefits?
Regards
Neil H.
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Master Member
Group: Forum Members
Last Login: Today @ 5:08:28 AM
Posts: 111,
Visits: 1,919
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Hi,
Since I couldn't wait for your response/fix, I proposed the following to my auditor:
Since Note 6 says:
> Vested benefits are benefits which are not conditional upon continued
> membership of the fund (or any other factor other than resignation from the
> fund) and include benefits which members were entitled to receive had they
> terminated their fund membership as at the reporting date.
and, for our fund, I cannot see that ANY of the benefits ARE conditional - I have put the vested benefits equal to the total member benefits in the notes in the draft report I sent you.
If you disagree with this let me know, so I can change it.
It does mean that the vested benefits figure of $0 in last years report would be wrong, but I would propose to tidy this up when we send out this years report to the members by including an Erratum in the covering letter
and he replied:
What you propose and your conclusion on Vested Benefits is fine by me.
So, I would request that if you come up with some other approach, please allow us to override it in the year end rollover. That way at least I can make sure that the year end reports saved in MySF match my reports.
Regards,
Neil H.
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Regular Member
Group: Forum Members
Last Login: 12/09/2011 4:40:13 PM
Posts: 28,
Visits: 336
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| Hi, Did this ever get fixed? I have a similar problem (in 9.3.0) where the Vested Benefits at Note 6 is equal to the Members Opening Balances plus/minus Adjustments, but ignores Income and Expenses. Both myself and my auditor agree that it should be the total of the Member Accounts (as there are no conditional items in our member accounts). Regards, TonyG
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