I am working on a Company which has passed a Declaration of Trust as at 31 December 2009 stating that as from that date all of its assets and liabilities are to be held in trust for another entity.  In other words, the Company will become a ‘bare nominee’.

I am to prepare the Company’s statement of financial position after the Declaration of Trust takes effect.  The statement of financial position is to reflect the reality that the Company has no assets or liabilities, however the Company still has its own equity (share capital).

Is it possible for a statement of financial position show only equity and nil assets or liabilities?

No one that I have talked to has ever come across this before…

It can’t be a balance sheet if it doesn’t balance (forgive the old terminology)!  I’m not sure what your opposite entry is as I’ve never seen this either. Surely if all assets and liabilities are transferred over then there is no longer any equity?

The most plausible option you have is to show the equity against a debtor balance due from the owners/equity holders. i.e they subscribed to the equity but never paid it. in that effect it does balance.

the question here is whether the equity holders would agree with that? and how much is the value of the equity?

all the best