PURPOSE
To outline the accounting treatment for Interest on Money Market Funds
OVERVIEW
Treatment for cash received or reinvestment of Money Market funds interest.
TRANSACTION DETAILS
| Trade ID |
| VDate |
| Position |
| Currency |
| Interest Amount |
MMF Interest Received
| MFT1001 |
| 21-Sep-11 |
800,000.00 |
| GBP |
| 659.92 |
| Trade ID |
| VDate |
| Position |
| Currency |
| Interest Amount |
Re-invest of MMF Interest
| MFT1002 |
| 6-Oct-11 |
800,000.00 |
| GBP |
| 495.21 |
| Trade ID |
| Buy/Sell |
| Trade Date |
| Value Date |
| Quantity |
| Trade Currency |
| Price |
| Gross Proceeds |
| Net Proceeds |
| IVM1003 |
| Buy |
| 6-Oct-11 |
| 6-Oct-11 |
| 495.21 |
GBP |
| 1.00 |
| 495.21 |
495.21 |
SUMMARY OF JOUNRALS
| ID | Date | Description |
|---|---|---|
| J1 | 6-Oct-11 | Trade MFT1002 - MMF Interest Settlement |
| J2 | 6-Oct-11 | Trade IVM1003 - Trade Date Journal |
| J3 | 6-Oct-11 | Trade IVM1003 - Settlement Date Journal |
J1 Trade MFT1002 – MMF Interest Settlement
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amount | Exc Rate | Ccy | Base Amount | Line |
|---|---|---|---|---|---|---|---|---|---|
| MFT1002 | 6-Oct-11 | B | Cash at Bank | GBP | 495.21 | 1.000000 | GBP | 495.21 | J1a |
| MFT1002 | 6-Oct-11 | B | MMF Interest Income | GBP | -495.21 | 1.000000 | GBP | -495.21 | J1b |
J2 Trade IVM1003 – Trade Date Journal
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amount | Exc Rate | Ccy | Base Amount | Line |
|---|---|---|---|---|---|---|---|---|---|
| MFT1002 | 6-Oct-11 | B | INV: Investment Equity Cost | GBP | 495.21 | 1.000000 | GBP | 495.21 | J2a |
| MFT1002 | 6-Oct-11 | B | INV: Due to Broker | GBP | -495.21 | 1.000000 | GBP | -495.21 | J2b |
J3 Trade IVM1003 – Settlement Date Journal
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amount | Exc Rate | Ccy | Base Amount | Line |
|---|---|---|---|---|---|---|---|---|---|
| MFT1002 | 6-Oct-11 | B | INV: Due to Broker | GBP | 495.21 | 1.000000 | GBP | 495.21 | J3a |
| MFT1002 | 6-Oct-11 | B | Cash at Bank | GBP | -495.21 | 1.000000 | GBP | -495.21 | J3b |
FREQUENTLY ASKED QUESTIONS
RELATED INFORMATION
CHANGE HISTORY
| Date | By | Changes |
|---|---|---|
| 23-Mar-2020 | TS | Creation. |
| 31-Mar-2020 | CS | Updated. |
| 06-Apr-2020 | LT | Re-formatting |
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