Wondering how others approach this. I’m struggling with a client who has significant retained earnings they cannot immediately extract and they’ve engaged TD Waterhouse to invest same. There is no issue with the regular Dividends and Interest, Capital Gains portions as these all run through the cash account, but the ETFs and DRIPs (among others) create issues where the T-slips (usually T3s) simply do not accord to the monthly statements, nor to the year-end values, as income is essentially reinvested as far as I can tell.
Add to that a new one for me “CMPINT” (presumably compound interest) of a significant amount shows on the T3 listing…but never appears in the client cash account.
I’m puzzled as how to approach. My thoughts are that I should report the gross income per the T-slip reporting (net of ROC of course) but the only potential offset must be a debit…so “income receivable”?
I generally keep the book value in the GL per the annual statements - or at least I did until now - as it made it reasonably easy to reconcile to the cash account. Alternatively I can report at Market value and discount the unrealized gains…which also works until it’s all extracted.