What to show on 5500C/R financials

[Guest ksumner]

Do we need to show the total share value (released and suspense) and the outstanding loan principal as assets on the 5500C/R? We put the shares is Corp. debt and the loan as a liability. The market value of the released shares is net asset. Is this the way it should be shown, or do we only put the market value of released shares?

[RLL]

All shares of company stock in an ESOP, including loan suspense account shares, are assets of the trust and must be included as such on Form 5500. The ESOP loan balance is a liability of the trust, not an asset. The shares are not company debt...they are corporate equity securities.

It is likely that the net assets (assets minus liabilities) of the ESOP trust will not be the same as the fair market value of the released (allocated) shares. This is because the fair market value of company stock will usually increase or decrease, and the value of the suspense account shares will be more or less than the loan balance.