Question for any CPA's out there.

[Guest LisaPA]

I know that the schedule of reportable transactions reports gains and losses based on a market to market approach. Should the same schedule attached to the financial statements use the actual cost in the "Cost of Asset" column since generally accepted accounting principles requires a cost to market approach? On the face of the financial statements, we combine realized and unrealized gains (losses) so the different method is not issue there.

Thanks for any help.

[BeckyMiller]

The cost of the asset as to be reported on the Schedule of Assets Held for Investment Purposes or Reportable Transactions is to be the original cost of such asset, not the prior year's adjusted market value. See page 209 of the AICPA's "Audits of Employee Benefit Plans" as revised for May 1, 2000.

The new exception to this general rule is that the cost figure may be omitted for assets subject to participant or beneficiary direction in an individual account plan.

This language in confirmed by the instructions to Schedule H of the Form 5500 series.