Sinking Fund Forecast
Quality Building Management (QBM) Sunshine Coast
Sinking Fund Forecast, Sinking Fund Appraisal
• The Sinking Fund Forecast is based on estimates of spending of a capital nature or non-recurrent nature and must allow for raising the necessary capital amount to provide necessary and reasonable spending for major works in the present financial year and create a reserve for anticipated major expenditure for the next 9 years—10 years in total.
• The age, location, construction and the past maintenance program of the building need to be taken into consideration. The sinking fund forecast should take into account the existing bank balance, interest earned, tax payable, estimated replacement cost, allowance for inflation, recommended years of life and yearly contributions.
Sinking Fund Appraisal
, Sinking Fund Forecast