demutualization, Trust assets & funding standards

[Guest Keith N]

Lets say in July 01, an insurance company informed my client that they would be receiving a demutualization check before the end of the year. The valuation date is October 1. They received the check in December 01.

If I am just now doing (or re-doing) the 10/1/01 valuation, and I know the amount of the check, can I recognize it as a trust asset for the 10/01/01 valuation?

What if it increases my assets by 10%?

If I can recognize "accrued income" as an asset, is a demutualization check any different? Can I treat it as a realized gain that just hasn't settled?

[Blinky the 3-eyed Fish]

When was the actual demutualization? If it's before 10/1, I would say you have a very good argument to treat the check as a receivable. If it's after 10/1, I would say your argument is weak.