Fiduciary Accounting Part 3: Special Accounting Elections & Distributions 2024

Overview

Trusts are old entities and go as far back as the Crusades when we were an agrarian society, and the only asset of any value was the land and what was produced on the land. Therefore, dividing the benefit in a trust between income and principal was logical and worked efficiently for a long time. However, times have significantly changed, and trusts are often invested in assets that don’t involve land, and these assets also have great value. Often, the value lies in their growth rather than their income. New rules have developed in the fiduciary accounting area that provide elections that often result in favorable benefits to the trust and the beneficiaries. This course will explore those elections.

Highlights

• Analyze a traditional fiduciary accounting situation
• Determine the use of the reserve for depreciation
• Become acquainted with the special accounting rule for business assets
• Review the accounting treatment of distributions from entities

Prerequisites

Fiduciary Accounting Part 2: Tools, Rules and Relationship to Tax

Designed For

CPAs and financial professionals.

Objectives

• Determine the special accounting rules available to a fiduciary
• Recognize the flexibility inherent in the elections provided by the state statutory accounting rules
• Identify situations where the use of special accounting rules can benefit both the trust and the beneficiaries

Preparation

None

Notice

This course is provided by a third-party vendor. Please note that login instructions will not be available in the ‘My Upcoming CPE’ section of the NESCPA website. Instead, the login instructions will be sent directly to you via email by the California Education Foundation (CalCPA). Upon completing the course, your hours will be recorded in the ‘My CPE Tracker’ section of the NESCPA website.