In specie contributions are contributions to a super fund in the form of an asset other than money.
This article may also be used for recording transactions relating to approved off-market share transfers.
For more information on in specie contributions refer to the ATO's website.
How to Process an In Specie Contribution
Record the In Specie Contribution as a Journal transaction type.
- From the Transaction List screen, select New Transaction. From the drop down list, select Journal.
From the Main Toolbar, go to Accounting. Select Transaction list from the list. Select the New Transaction. Select Journal.
Input the date of the transaction and a reference number (Simple Fund 360 will automatically produce a reference number, but it is editable). You can include a description of the transaction in the Description box.
- Under the Account heading, click on the Select an account check box and begin typing and select the investment account (for example 77600/INVESTCODE) from the drop down list. Input the number of units and the value of the shares in the Debit column. Refer to Investment Accounts if you need to add the account to the Chart of Accounts.
Click on the next Select an account box. Begin typing and select account 24200/MEMBERCODE from the drop down list. Input the value of the in specie contribution in the Credit column.
In this example 10 BHP shares are transferred into the fund.
The More Details Panel will appear below. Ensure the correct contribution type is selected for the in specie contribution. For more information on in specie contributions, click here.
Contribution Potential More Details Panel Fields Business Real Property A) 15 Year Exemtpion B) Retirement Exemption Listed Shares/Units Concessional/Non-Concessional
- After you have entered all information for the transaction, select Post to add the transaction and to return to the Transaction List, or select Post & Add Another to add the transaction to the Transaction List, but remain on the Journal screen.
How to Process an In-specie Contribution at Market Rate with CGT Relief
This article will show you how to account for the scenario where a fund may receive a non-cash asset at market rate.
A situation where this could occur would be the settlement from a divorce.
Consider a fund receiving the following from a settlement:
|$20 each = $20,000
|$25 each = $25,000
The following journal will be used to record this:
|BHP Shares by 1,000 units
|BHP Shares by <blank> units (Revaluation)
In Simple Fund 360:
Click the button and ensure the CGT Contract Date recorded is the original contract date of the shares: