Overview
This article will look at how Futures Contracts can be recorded in Simple Fund 360.
Capital or Revenue?
ATO ID 2010/7 establishes that where a self managed superannuation fund (SMSF) buys and sells Futures Contracts, the gains and losses determined under the Capital Gains Tax (CGT) provisionsRecording in Simple Fund 360. This guide assumes you will be recording the Transactions as CGT Transactions.
If you wish to record it on Revenue account follow the same steps as Recording a contract for difference (CFD)
Note
BGL do not provide accounting or taxation advice. The following is designed to act as a guide for Simple Fund 360 users. It is not designed to be accounting or tax advice and should not be taken as a strict guideline. Other methods that are more suitable may be used instead of these steps.
Create the Investment Account
Navigate to the Chart of Accounts
| From the Main Toolbar, go to Accounting. |
|
| Select Chart of accounts from the list. |
|
Click Add Account then select Investment
Click Select Securities then click Create New
Enter the details and click Save
Search for the newly created security and select it
Set the Investment Type as Derivatives (Options, Hybrids, Future Contracts)
Click Save
Recording a Purchase
Example
An SMSF 100 purchases futures contract maturing on 15 January 2018 for $10,000
| Account | Code | Units | Debit ($) | Credit ($) |
|---|---|---|---|---|
| Futures | 72300/Futures | 100 | 10,000 | |
| Bank | 60400/Bank Code | 10,000 |
Recording a Margin Call
Margins paid should not constitute a capital amount that has been set aside for future conitingincies.
This should be entered as a Cost Base Adjustment:
| Account | Code | Units | Debit ($) | Credit ($) |
|---|---|---|---|---|
| Futures Investment Account | 72300/Futures | 0 | 8000 | |
| Bank | 60400/Bank Code | 8,000 |
Trading Gain
100 contracts sold for $5240
The following journal records this:
| Account | Code | Units | Debit ($) | Credit ($) |
|---|---|---|---|---|
| Futures Investment Account | 72300/Futures | -100 | 5,240 | |
| Bank | 60400 | 5240 |
Revalue the investment
At year end, the trading account will need to be revalued to ensure it is recorded at market value
Please refer to the following link for instructions on doing this:
Manually Revaluing Security Prices