## Overview

When a Cost Base Reset is processed by Simple Fund 360, a notional gain may arise. The Capital Gain can either be realised in the current year or carried forward to be paid once the asset has been disposed of.

When a fund is subjected to multiple actuarial certificates in the given financial year, Simple Fund 360 will use the** First Percentage** entered into the pension policy to calculate the notional gain amount. (Assuming the cost base reset was actioned with the percentage entered)

When an amended Actuary Percentage is required and differs from the original Actuary Percentage entered into the pension policy, Simple Fund 360 will continue using the Original Percentage instead of adjusting the notional gain amount to reflect the Final Actuary Percentage.

This article will consider the following three scenarios:

- You have already processed a cost base reset using the original Actuary Percentage and you want to instead use the Final Actuary Percentage
- You want to only apply the original Actuary Percentage
- You want to only apply the Final Actuary Percentage

Fully Segregated Funds

**Example - Use Final Actuary Percentage when a cost base reset has used the original percentage**

The fund has a holding of BHP shares with the following amounts as at 30 June 2017:

Asset | Cost Base | Market Value at 30 June 2017 | Gross Gain | Discounted Gain |
---|---|---|---|---|

BHP Shares | 200,000 | 232,800 | 32,800 | 21,866.67 |

The fund wishes to apply the cost base reset to this holding and has an entered an Actuary Percentage of 99%.

The notional gain would be $218 (*1% x 21,866)*

The fund applies a cost base reset using Simple Fund 360's Cost Base Reset tool choosing to defer the gain and notices the following transaction appearing in the Transaction List:

After creating entries, the notional gain amount is verified by checking Question 8 of the CGT Schedule in the Annual Return:

The fund then receives their Final Actuary Percentage which has changed from 99% to 98% and enters this percentage:

The deferred notional gain would now be $437 (2% x 21,866). The fund wishes to use this percentage to calculate the deferred notional gain

## What to do in Simple Fund 360

**Example - Use Final Actuary Percentage when a cost base reset has used the original Percentage**

To use the Final Actuarial Percentage when a Draft Actuarial Percentage has already been entered, you will need to complete the following steps:

- Reverse the cost base reset
- Ensure the Final Actuary Percentage is entered

- Perform the cost base reset again.

- Create entries

**Only want to apply the original Actuary Percentage**

- Input the original actuary percentage
- Perform the cost base reset
- Create entries
- Get the final actuary certificate and reverse and re-create entries

**Only want to apply the Final Actuary Percentage**

If you have not recorded a cost base reset and wish to use the final actuary percentage please follow the steps below:

**Do not enter an actuary percentage yet****Perform the cost base reset**

From the **Main Toolbar**, go to**Investments**.Select **Corporate actions**from the list.

**Apply the actuary percentage**

From the **Main Toolbar**, go to**Member.**Select **Fund pension policies**from the list.

Click on New Acturial Certificate

Enter the relevant details of the Actuary Certificate in the appropriate fields.

**You may now proceed to finalise the fund**