Trust Accounting and Financial Statement Preparation Assistance for Plan Sponsors and Auditors:
Trust accounting is a key component of plan management and operation. The byproduct of the trust accounting function is the preparation of financial statements for the plan and trust.
Management is responsible for the preparation of the financial statements included in the Annual Report.
It is the responsibility of the independent auditors to report on the fair presentation of the financial statements.
Trust accounting procedures help trustees accurately record operating transactions and include balance sheets, income statement and reconciliation of contributions, earnings, other income, expenses, and distributions to plan participants.
Accurate reporting of assets, liabilities, expenses, income, payables and receivables.
Complete proper asset reconciliations including asset classifications necessary for inclusion in the Annual Funding notice and Form 5500.
Retirement plan accounting involves reconciliation of the total assets held in a trust.
Provides information that is required for governmental reporting and disclosure as part of the annual Form 5500 filing process.
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