Appendix B Searches

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Financial statements

63 The trustee must ensure that financial statements are prepared as at the end of each
financial year by an appropriately qualified accountant, unless determined otherwise by
the trustee. The statements are to include a profit and loss account and a balance sheet.
if the trustee uses an accountant, then they are to be certified by that accountant to be a
true and proper statement of the affairs of the trust in accordance with generally accepted
accounting principles. To the extent appropriate to the trust's circumstances, they must
set out:

« the income of the trust;
e the capital of the trust;

* costs and disbursements and other outgoings paid or payable out of the trust
and chargeable against income;

* capital expenditure and liabilities chargeable to capital:
« investments and money comprised in the trust;

* amounts held in the accumulated income account;

* amounts distributed to beneficiaries;

* provisions and charges properly referable to the derivation of income.

Access to accounts and books

64 A beneficiary is entitled to inspect the books and accounts of the trust on giving the
trustee reasonable notice.

Auditor

65 On the appointor’s request, the trustee must appoint an auditor to act as auditor of the
accounts of the trust.

Currency conversion

66 _ Hit is necessary to.convert an amount from one currency to another, the trustee must
decide when it is to take place and the basis on which it is to be done.

Trustee may value assets and liabilities

67 The trustee may at any time value the assets and liabilities of the trust. In doing so, the
trustee is not to be regarded as having a valuer’s knowledge or any expertise in valuing
assets. The trustee may determine what valuation methods and policies to apply. The
valuation of an asset must be a market valuation unless the trustee decides that there is
no market for an asset or that the market value does not represent its fair value.

No partnership etc

68 This deed does not create the relationship of partners, or of principal and agent, between
: the trustee and the beneficiaries. It does not create the relationship of partners between
the beneficiaries.

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