Loss Carry Forward Reinstatement – Leadership Answers

The purpose of the Loss Carry Forward Reinstatement is for Owners of the Market Center to recover losses from prior periods due to a national emergency, natural disaster or normal market fluctuations resulting in a loss. A Loss Carry Forward Reinstatement allows a Market Center to override the profit share calculation during month end close to offset operating profit with prior period losses.

You will not request a LCF Reinstatement amount until such time the Market Center projects profitability for the month you are closing; i.e. you cannot offset owner profit you do not have.

To apply for a LCF Reinstatement you must apply to your Region for approval. If approved, the Region will submit to KWRI for approval. An email with KWRI's approval or not, and any further instructions will be sent directly to the Market Center.

Transactions will continue to carry forward the LCF balance until such time it is exhausted by positive owner profit, or it is manually overridden with a LCF write-off.

Click here for more information on LCF Write-offs and the impact it has to the financial statement.

Loss Carry-Forward Impact Example:

LCF Impact Example.png

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