odd unit adjustments., looking back

Deannie Rule on

hello

i am preparing my accounting for the annual audit. i watche
dthe webinar receintly and have a new aware ness of what
needs to be done. I was checking individual member
accounts, for discrep]ancies in the paslt. each 12/31 there
has been a unit admustment. most aer small but one is 35
units, some are 5. to make matters worse, it is my own
account that has the 35 unit adjustment (i think to the
good)

the large one seems to be a 2002 tax adustment.

it these are mistakes i don't have a clue how to correct
them. this is probably the first time i have prepared the
audit to be like it should be. I;ve been doing this for 10
years. it frightens me that i might have shortchanges some.

;

Rip West on

Deannie,

Not to worry. For years, people using the IClub product 'distributed units' at the end of each year. This was an effort to mimic mutual funds which paid out their earnings at the end of each year and the members used these distributions to reinvest in the mutual fund. This just doesn't happen in investment clubs. Therefore, when the software 'distributed units', it had to make an offsetting adjustment to the unit value so the member's account would be worth just as much as it was before this useless exercise took place. Incidentally, IClub no longer recommends that this practice be followed. When importing IClub's data into bivio, bivio did record these unit adjustments, but also made the necessary adjustment to unit value so the member's value did not change. Now that neither software company follows this practice any more, the confusion will stop.

To repeat. These unit adjustments were never necessary, accomplished nothing, and did not affect your value. You can safely ignore them when looking at prior years.

Congratulations on getting into the audit scene. Thank you for attending our webinar.

Rip West
Saint Paul, MN

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