How do I move Underlying Assets into a Managed Investment?
To move underlying assets into a managed investment, two journals will need to be recorded. Both of these journals will use the 94910 Investment Movement Data Clearing account to balance the entries as these cannot be entered as a single journal. Note that if there are multiple parcels, they should be separated into their own lines.
- A disposal of the underlying investments at cost.
DR CR Underlying Asset 1 by 100 units $XX,XXX Underlying Asset 2 by 300 units $XX,XXX Underlying Asset 3 by 200 units $XX,XXX Underlying Asset n by x units $XX,XXX Investment Movement Data Clearing Account $XXX,XXX
- An acquisition of the managed investment at cost.
DR CR Managed Investment / Wrap Account by 1 unit $XXX,XXX Investment Movement Data Clearing Account $XXX,XXX
What to do in Simple Fund 360
1. Ensure that the CGT Cost Base of the investment is the same as the Accounting Cost Base. This can be seen in the Unrealised Gains Report.
If an adjustment is needed, see the CGT Cost Base Adjustment article for instructions.
2. Dispose of the underlying investments at cost.
For this example, it is assumed that the following underlying investments constitute the Managed Investment. All figures are at cost:
|RIO Tinto Ltd Shares
The following journal shows how to record this acquisition in Simple Fund 360. Ensure that the relevant CGT dates are entered in the Investment Purchase Details screen
3. Acquisition of the Managed Investment.
The cost base of the underlying assets will be debited against the Managed Investment's balance.
Units of "1" are used as this will be treated as an acquisition of the Managed Investment.