Issue

The fund is winding up and has a tax refund position, how do I update the Statement of Financial Position?

Cause

After all investments have been sold and the cash balance has been taken out of the fund, there are still asset and member entitlements left in the Statement of Financial Position. This is due to the fund having a Tax Refundable position in the year of winding up.

The fund will not have cash to pay the members until the return has been lodged and the tax refund is received.

The fund is winding up in the current financial year and the member entitlements need to be updated to Nil as at the Winding.

Resolution

Generally, there are two options available to resolve this issue:

Option 1:  Have a Nil member entitlements shown in the Statement of Financial Position

Option 2: Have Nil Asset, liability and member entitlements shown in the Statement of financial position

Have a Nil member entitlements on the Statement of Financial Position

1. Run a period update to the winding up date
2. Process the rollover or lump sum event based on the tax assets value to clear up the member entitlements. This will create a Modified Event 
   

   Navigate to Fund Level > Transactions > Member Payments 

3. Re-run the last period update to clear  the Modified Event
4. Review by
   

   Navigate to Fund Level > Reports > Statement of Financial Position 

   The assets should equal the liabilities and the member entitlements should be nil 

Example:

Have Nil Asset, Liability or member entitlements on the Statement of Financial Position

1. Create a Custom Holding Account, select 'Sundry Asset' as the GL Classification
2. Process a Cash In transaction in the Custom Holding Account with the tax refund amount as at the winding up date 
3. Process a Fund Income Tax Payment event as at the winding up date with the tax refund amount
4. Match Cash in transaction to the Fund Income Tax Payment event
5. Process the rollover or lump sum event based on the tax assets value to remove the member entitlements as at the winding up date by 
   

   Navigate to Fund Level > Transactions > Member Payments 

6. Process a Cash Out transaction in the Custom Holding Account with the tax refund amount as at the winding up date
7. Match the Cash Out transaction to the Member Payment event
8. Run a period update to the winding up date
9. Review the Statement of Financial Position - all amount should now be zero

Example: