PURPOSE
To show illustration of investment in equity.
OVERVIEW
Gains and losses arising from trading activity are reported to on trade date. Gains and losses analyzed between price and foreign exchange component. Month end security position reported at market value.
TRANSACTION DETAILS
| Portfolio |
| Security Name |
| APT |
| ACO |
| Trade ID |
| Buy/Sell |
| Trade Date |
| Value Date |
| Quantity |
| Trade Currency |
| Price |
| Gross Proceeds |
| Commission |
| Contract Stamp |
| Fees |
| GST/VAT |
| Transaction Cost |
| Net Proceeds |
| IVM1001 |
| Buy |
3-Feb-03 |
4-Feb-03 |
10,000.00 |
SGD |
1.23 |
12,345.00 |
6.82 |
7.52 |
9.05 |
6.29 |
29.68 |
12,374.68 |
| IVM1002 |
| Buy |
4-Feb-03 |
5-Feb-03 |
20,000.00 |
SGD |
1.57 |
31,356.00 |
7.12 |
2.74 |
8.37 |
3.62 |
21.85 |
31,377.85 |
| IVM1003 |
| Sell |
5-Feb-03 |
6-Feb-03 |
3,000.00 |
SGD |
1.65 |
4,963.20 |
0.66 |
3.56 |
9.33 |
4.24 |
17.79 |
4,945.41 |
The following is the movement in cumulative carrying cost as the result of transaction IVM1001 and IVM1002
| Trade | Date | Buy/Sell | Quantity | Net Cost SGD | Exc Rate | Net Cost USD |
|---|---|---|---|---|---|---|
| IVM1001 | 3-Feb-03 | Buy | 10,000.00 | 12,374.68 | 0.567456 | 7,022.09 |
| IVM1002 | 4-Feb-03 | Buy | 20,000.00 | 31,377.85 | 0.585806 | 18,381.33 |
| Cumulative quantity and cost | 30,000.00 | 43,752.53 | 0.00 | 25,403.42 | ||
A | B |
DIVIDEND INCOME
| Declare Date |
| Ex-quantity |
| Per Share |
| Total |
| Tax |
| Tax Amt |
| Transaction Cost |
| Net Dividend |
| 25-Feb-03 |
27,000.00 |
0.123 |
3,321.00 |
27% |
896.67 |
11.23 |
2,413.10 |
MONTH END VALUATION
| ACO | Valuation |
| 28-Feb | 1.7123 / share |
SUMMARY OF JOURNALS
| ID | Date | Description |
|---|---|---|
| J1 | 3-Feb-03 | Trade IVM1001 - Trade Date Journal |
| J2 | 4-Feb-03 | Trade IVM1001 - Settlement Date Journal |
| J3 | 4-Feb-03 | Trade IVM1002 - Trade Date Journals |
| J4 | 5-Feb-03 | Trade IVM1002 - Settlement Date Journals |
| J5 | 5-Feb-03 | Trade IVM1003 - Trade Date Journals |
| J6 | 6-Feb-03 | Trade IVM1003 - Settlement Date Journals |
| J7 | 28-Feb-03 | Month end revaluation of investment position |
| J8 | 1-Mar-03 | Reversal of month marked to market |
| J9 | 28-Feb-03 | Month end accruals of dividend accruals |
| J10 | 1-Mar-03 | Reversal of month end accruals |
| J11 | 5-Mar-03 | Settlement of Dividend |
J1 Trade IVM1001 – Trade Date Journal
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amt D/(CR) | Rate | Base | Base Amt D/(CR) | Line |
|---|---|---|---|---|---|---|---|---|---|
| IVM1001 | 3-Feb-03 | B | INV: Investment - Cost | SGD | 12,374.68 | 0.567456 | USD | 7,022.09 | J1a |
| IVM1001 | 3-Feb-03 | B | INV: Due to Broker | SGD | -12,374.68 | 0.567456 | USD | -7,022.09 | J1b |
Note J1a: The exchange rate 1.76225 is the booking rate on 03-Feb-03 (multiplier 0.567456).
J2 Trade IVM1001 – Settlement Date Journal
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amt D/(CR) | Rate | Base | Base Amt D/(CR) | Line |
|---|---|---|---|---|---|---|---|---|---|
| IVM1001 | 4-Feb-03 | B | INV: Due to Broker | SGD | 12,374.68 | 0.567456 | USD | 7,022.09 | J2a |
| IVM1001 | 4-Feb-03 | B | Cash at Bank | SGD | -12,374.68 | 0.585806 | USD | -7,249.16 | J2b |
| IVM1001 | 4-Feb-03 | B | FX Realised Losses - Investment | SGD | 0.00 | 0.000000 | USD | 227.07 | J2c |
Note J2b: The exchange rate 1.70705 is the booking rate on settlement of the trade – 04-Feb-03 (multiplier 0.585806).
Note J2c: The FX realised arises because of the rate movement between 3rd and the 4th of Feb on the payable amount of SGD 12,347.68. This may be calculated as follows:
| SGD - 12,374.68 converted to USD | at 0.567456 | -7,022.09 |
| at 0.585806 | -7,249.16 | |
| Additional payable amount (loss) | -227.07 |
J3 Trade IVM1002 – Trade Date Journals
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amt D/(CR) | Rate | Base | Base Amt D/(CR) | Line |
|---|---|---|---|---|---|---|---|---|---|
| IVM1002 | 4-Feb-03 | B | INV: Investment Cost | SGD | 31,377.85 | 0.585806 | USD | 18,381.33 | J3a |
| IVM1002 | 4-Feb-03 | B | INV: Due to Broker | SGD | -31,377.85 | 0.585806 | USD | -18,381.33 | J3b |
J4 Trade IVM1002 – Settlement Date Journals
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amt D/(CR) | Rate | Base | Base Amt D/(CR) | Line |
|---|---|---|---|---|---|---|---|---|---|
| IVM1002 | 5-Feb-03 | B | INV: Due to Broker | SGD | 31,377.85 | 0.585806 | USD | 18,381.33 | J4a |
| IVM1002 | 5-Feb-03 | B | Cash at Bank | SGD | -31,377.85 | 0.571883 | USD | -17,944.45 | J4b |
| IVM1002 | 5-Feb-03 | P | FX - Realised Gains - Investment | SGD | 0.00 | 0.000000 | USD | -436.88 | J4c |
J5 Trade IVM1003 – Trade Date Journals
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amt D/(CR) | Rate | Base | Base Amt D/(CR) | Line |
|---|---|---|---|---|---|---|---|---|---|
| IVM1003 | 5-Feb-03 | B | INV: Due to Broker | SGD | 4,945.41 | 0.571882 | USD | 2,828.19 | J5a |
| IVM1003 | 5-Feb-03 | B | INV: Investment - Cost | SGD | -4,375.25 | 0.508616 | USD | -2,540.34 | J5b |
| IVM1003 | 5-Feb-03 | P | INV: Trading Income Price Impact | SGD | -570.16 | 0.571875 | USD | -326.06 | J5c |
| IVM1003 | 5-Feb-03 | P | INV: Trading Income FX Impact | SGD | 0.00 | 0.000000 | USD | 38.21 | J5d |
IVM1003 is a sale transaction that liquidate 3,000 of the holding of 30,000 shares. As a result, there are profit and impact of the transaction. There are calculated as follows and used for the journals.
Note J5b: Calculation of Cost
| Quantity | Trade Ccy | Base Ccy | ||
| 30,000.00 | 43,752.53 | = A | 25,403.42 | = B |
| 1.00 | 1.45841767 | 0.84678067 | ||
| 30,000.00 | 4,735.25 | 2,540.34 | ||
| C | D |
Note J5a: Calculation of Total Profit and Loss
| Trade Ccy | Base Ccy | |||
| Proceeds | 4,945.41 | E | 2,828.19 | F |
| Cost | 4,375.25 | = C | 2,540.34 | = D |
| Profit and Loss | 570.16 | 287.85 |
Calculation of Current Rate (as a multiplier)
| Trade Proceeds | 4,945.41 | = E |
| Base Proceeds | 2,828.19 | = F |
| Current Rate | 0.57188181 | G = E / F |
Note J5d: Calculation of FX Impact
| Base Cost at Historical Rate | 2,540.34 | = D |
| Base Cost at Current Rate | 2,502.13 | H = C * G |
| FX Impact (Loss) | -38.21 | J = H - D |
Note J5c: Calculation of Price Impact
| Base Cost at Current Rate | 2,502.13 | = H |
| Base Proceeds | 2,828.19 | = F |
| Price Impact (Profit) | 326.06 | L = F - H |
Alternatively, to avoid rounding error in calculation, the price impact can be computed as the residual amount of the total profit and loss after the FX Impact.
| FX Impact | -38.21 | = J |
| Price Impact (Profit) | 326.06 | |
| Total Profit and Loss | 287.85 |
J6 Trade IVM1003 – Settlement Date Journals
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amt D/(CR) | Rate | Base | Base Amt D/(CR) | Line |
|---|---|---|---|---|---|---|---|---|---|
| IVM1003 | 6-Feb-03 | B | INV: Due to Broker | SGD | -4,945.41 | 0.571882 | USD | -2,828.19 | J6a |
| IVM1003 | 6-Feb-03 | B | Cash at Bank | SGD | 4,945.41 | 0.560451 | USD | 2,771.66 | J6b |
| IVM1003 | 6-Feb-03 | P | FX - Realised Losses - Investment | SGD | 0.00 | 0.000000 | USD | 56.53 | J6c |
J7 Month end revaluation of investment position
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amt D/(CR) | Rate | Base | Base Amt D/(CR) | Line |
|---|---|---|---|---|---|---|---|---|---|
| APT/ACO | 28-Feb-03 | B | INV: Investment Cost | SGD | 6,854.82 | 0.501724 | USD | 3,439.23 | J7a |
| APT/ACO | 28-Feb-03 | P | INV: MTM - Price Impact | SGD | -6,854.82 | 0.568919 | USD | -3,899.84 | J7b |
| APT/ACO | 28-Feb-03 | P | INV: MTM - FX Impact | SGD | 0.00 | 0.000000 | USD | 460.61 | J7c |
At month end the position in ACO shares is 27,000. The market value per share is 1.7123. The position is marked to market (MTM) for accounting proposes. The breakdown of the revaluation profit and loss is as follows:
Calculation of Market Cost
| Quantity | Price | Trade Ccy | Rate | Base Ccy | ||
| 27,000.00 | 1.7123 | 46,232.10 | A' | 0.568919 | 26,302.31 | B' |
Calculation of Position and Holding Cost
| 30,000.00 | 43,752.53 | = A | 25,403.42 | = B |
| -3,000.00 | -4,475.25 | -2,540.34 | ||
| 27,000.00 | 39,277.28 | C' | 22,863.08 | D' |
Note J7a: Calculation of Revaluation MTM
| Trade Ccy | Base Ccy | |||
| MV | 46,232.10 | = A' | 26,302.31 | = B' |
| Cost | 39,377.28 | = C' | 22,863.08 | = D' |
| Profit and Loss | 6,854.82 | 3,439.23 |
Calculation of Historical Rate (as a multiplier)
| Trade Cost Value | 39,377.28 | = C' |
| Base Cost Value | 22,863.08 | = D' |
| Current Rate | 0.58061603 | E' = D' / C' |
Calculation of Current Rate (as a multiplier)
| Trade Market Value | 46,323.10 | = A' |
| Base Market Value | 26,302.31 | = B' |
| Current Rate | 0.56891878 | E' = B' / A' |
Note J7c: Calculation of FX Impact
| Base Cost at Historical Rate | 22,863.08 | G' = E' * C' |
| Base Cost at Current Rate | 22,402.47 | H' = C' * F' |
| FX Impact (Loss) | -460.61 | J' |
Note J7b: Calculation of Price Impact
| Base Cost at Current Rate | 22,402.47 | = J' |
| Base Cost at Market Value | 26,302.31 | = B' |
| Price Impact (Profit) | 3,899.84 | J' |
Alternatively, to avoid rounding error in calculation, the price impact can be computed as the residual amount of the total profit and loss after the FX Impact.
| FX Impact | -460.61 | = H' |
| Price Impact (Profit) | 3,899.84 | |
| Total Profit and Loss | 3,439.23 |
J8 Reversal of month marked to market
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amt D/(CR) | Rate | Base | Base Amt D/(CR) | Line |
|---|---|---|---|---|---|---|---|---|---|
| APT/ACO | 1-Mar-03 | B | INV: Investment Cost | SGD | -6,854.82 | 0.501724 | USD | -3,439.23 | J8a |
| APT/ACO | 1-Mar-03 | P | INV: MTM - Price Impact | SGD | 6,854.82 | 0.568919 | USD | 3,899.84 | J8b |
| APT/ACO | 1-Mar-03 | P | INV: MTM - FX Impact | SGD | 0.00 | 0.000000 | USD | -460.61 | J8c |
J9 Month end accruals of dividend accruals
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amt D/(CR) | Rate | Base | Base Amt D/(CR) | Line |
|---|---|---|---|---|---|---|---|---|---|
| APT/ACO | 28-Feb-03 | P | DIV: Dividend Income | SGD | -3,321.00 | 0.562662 | USD | -1,868.60 | J9a |
| APT/ACO | 28-Feb-03 | P | DIV: Tax on Dividend | SGD | 896.67 | 0.562661 | USD | 504.52 | J9b |
| APT/ACO | 28-Feb-03 | P | DIV: Other Dividend Expenses | SGD | 11.23 | 0.562778 | USD | 6.32 | J9c |
| APT/ACO | 28-Feb-03 | B | DIV: Dividend Receivable | SGD | 2,413.10 | 0.568920 | USD | 1,372.86 | J9d |
| APT/ACO | 28-Feb-03 | P | FX - Unrealised Gains - Revenue | SGD | 0.00 | 0.000000 | USD | -15.10 | J9e |
Note J9a to J9c: Booking rate for journals
| Quantity | Per Share | Tax | Tax Amt | Transx Cost | Net Dividend | ||
| Ccy Amt | 27,000.00 | 0.123 | 0.27 | 896.67 | 11.23 | 2,413.10 | |
| Base Amount @ 25 Feb | 0.56266071 | 0.15 | 504.52 | 6.23 | 1,357.76 | =A" |
Note J9e: Computation of FX gain on unrealized dividend receivable
| Base Amount @ 28 Feb | 0.56891792 | 1,372.86 | = B" |
| FX Gains on Net Dividend | 15.10 | C" = B" - A" |
J10 Reversal of month end accruals
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amt D/(CR) | Rate | Base | Base Amt D/(CR) | Line |
|---|---|---|---|---|---|---|---|---|---|
| APT/ACO | 1-Mar-03 | P | DIV: Dividend Income | SGD | 3,321.00 | 0.562662 | USD | 1,868.60 | J10a |
| APT/ACO | 1-Mar-03 | P | DIV: Tax on Dividend | SGD | -896.67 | 0.562661 | USD | -504.52 | J10b |
| APT/ACO | 1-Mar-03 | P | DIV: Other Dividend Expenses | SGD | -11.23 | 0.562778 | USD | -6.32 | J10c |
| APT/ACO | 1-Mar-03 | B | DIV: Dividend Receivable | SGD | -2,413.10 | 0.568920 | USD | -1,372.86 | J10d |
| APT/ACO | 1-Mar-03 | P | FX - Unrealised Gains - Revenue | SGD | 0.00 | 0.000000 | USD | 15.10 | J10e |
J11 Settlement of Dividend
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amt D/(CR) | Rate | Base | Base Amt D/(CR) | Line |
|---|---|---|---|---|---|---|---|---|---|
| APT/ACO | 5-Mar-03 | P | DIV: Dividend Income | SGD | -3,321.00 | 0.562662 | USD | -1,868.60 | J11a |
| APT/ACO | 5-Mar-03 | P | DIV: Tax on Dividend | SGD | 896.67 | 0.562660 | USD | 504.52 | J11b |
| APT/ACO | 5-Mar-03 | P | DIV: Other Dividend Expenses | SGD | 11.23 | 0.562778 | USD | 6.32 | J11c |
| APT/ACO | 5-Mar-03 | B | Cash | SGD | 2,413.10 | 0.568344 | USD | 1,371.47 | J11d |
| APT/ACO | 5-Mar-03 | P | FX - Realised Gains - Revenue | SGD | 0.00 | 0.000000 | USD | -13.71 | J11e |
Note J11a to J11c: Booking rate for journals
| Quantity | Per Share | Tax | Tax Amt | Transx Cost | Net Dividend | ||
| Ccy Amt | 27,000.00 | 0.123 | 0.27 | 896.67 | 11.23 | 2,413.10 | |
| Base Amount @ 25 Feb | 0.56266071 | 0.15 | 504.52 | 6.23 | 1,357.76 | A~ |
Note J11e: Computation of FX gain on unrealized dividend receivable
| Base Amount @ 28 Feb | 0.56834328 | 1,371.47 | = B~ |
| FX Gains on Net Dividend | 13.71 | C~ = B~ - A~ |
EXCHANGE RATES
Our illustration assumes the company uses different daily exchange rates for accounting.
Average rates are computed by using the multiplier rate from trade/transaction currency to the base currency each day and averaging this over the relevant period.
The following rates were used for this illustration.
Spot Rate
| Date | USD/SGD | SGD/USD* |
| 3-Feb-03 | 1.762250 | 0.567456 |
| 4-Feb-03 | 1.707050 | 0.585806 |
| 5-Feb-03 | 1.748610 | 0.571883 |
| 6-Feb-03 | 1.784280 | 0.560450 |
| 25-Feb-03 | 1.777270 | 0.562661 |
| 28-Feb-03 | 1.757720 | 0.567919 |
| 1-Mar-03 | 1.771690 | 0.564433 |
| 5-Mar-03 | 1.759500 | 0.568343 |
* round to 6 dp. Full precision used for calculation.
FREQUENTLY ASKED QUESTIONS
RELATED INFORMATION
CHANGE HISTORY
| Date | By | Changes |
|---|---|---|
| 17-Feb-2010 | CS | Creation. |
| 20-Jun-2016 | RJ | Reformatted. |
| 28-Apr-2020 | LT | Re-formatting. |
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