Fundamental Accounting For Trustees

With all the buzz about Current Expected Credit Losses or (CECL) many financial institutions find themselves starring off into the abyss. The new regulations tend to lead many Trustees into a Train of thought of what to do, now that they must disclose pertinent information about the substantiation of certain books of business. This remains me of something my mentor once said, " If you stick around long enough you will learn the difference between money and REAL MONEY".

Accounting has been one of the most overlooked aspects of substantiation. Accounts receivables should be booked thru an Accounting Concept that demonstrates clear Concise Transparency. Most entrepreneurs have a Connotative Concept of Money Valuation. They usually Transact in commerce first, and then substantiate the Transaction afterwards. This reckless conduct creates a variety of Violations under Uniform Commercial Code and International Law. The saving grace for many trustees is Mastering certain general accepted accounting principals that protect the integrity of the Trust that they have a fiduciary duty to administer over.

According to the Bank Holding Company Act, a company becomes a bank
holding company when it acquires control over any bank." A definition of
"bank" is given for the purposes of the act'" The original definition, as enacted
in 1956, included all national banks. state banks, and savings banks. In 1966,
Congress amended this definition so that it was narrower in scope. It substituted
the language "any institution that accepts deposits that the depositor has a legal
right to withdraw on demand" for the original reference to specific types of
institutions. These entities are referred to in the industry as NON BANK BANKS or (NBBs)

A conspiracy occurs when two or more people plot to commit an unlawful act. In some cases, a conspiracy can also occur when an act is not illegal, per se, but becomes unlawful when committed by a group of people. The main difference between a civil conspiracy and a criminal conspiracy is that in a criminal conspiracy, the actors are intending to commit an act that is punishable under criminal laws. A civil conspiracy can occur when two or more people conspire to commit an act that is not criminal, but still unlawful, and another person is injured by the act.

Legislation protects certain Trustees while punishing others and it has everything to do with accounting. The Connotative Concept of Money Valuation rest solely upon the fiduciary's shoulders. The Convention that the fiduciary subscribes to grant them commercial immunity and the right to Indemnification.

If this article has sparked you interest in learning more about the Connative Concept of Money Valuation please email the author and make a request for additional information.