Solution

Simple Fund 360 will not add/gross up imputation, TFN, or foreign credits to income accounts. These amounts will be offset against the fund's Income Tax Expense account (48500). 

The Australian Accounting Standards Board discussed the recognition of franked dividend revenue, highlighting that current Australian practice adheres to a net basis recognition, where only the dividend amount is recorded as revenue, excluding any attached franking credits. This method aligns with the principle of measuring revenue at the fair value of consideration received, disregarding specific tax implications. Historical decisions dating back to 1997 have consistently supported this approach, maintained even after significant changes like the introduction of International Financial Reporting Standards in 2005 and modifications to the imputation system.  

What if it is the first year for the SMSF on Simple Fund 360 and previously Imputed Credits were recognised as income? 

Note: This will cause a discrepancy in comparative amounts for the first processed financial year in Simple Fund 360. A note can be added as an APES footer (Badges).