Foreign Exchange Outright Cross – with TDate Journal

PURPOSE

To show illustration of foreign exchange outright cross with transaction date journal.

OVERVIEW

i. Foreign Exchange outright transaction revalued at period and using market spot rates.

ii. Settlement amounts are journalled to FRX: Deals Payables or Receivables accounts in the general ledger.

TRANSACTION DETAILS

Accounting Base Ccy
Trade ID
Trade Date
Value Date
Transaction
Against currency settlement
Buy Amount
Sell Amount
SGD
FRX1001
25-Mar-03
3-Apr-03
Sell GBP
USD
USD 1,453,000.00
GBP 1,000,000.00

SUMMARY OF JOURNALS

IDDateDescription
J125-Mar-03Trade Date
J225-Mar-03Trade Date
J331-Mar-03Month end revaluation
J431-Mar-03Month end revaluation
J51-Apr-03Reversal of Month end revaluation
J61-Apr-03Reversal of Month end revaluation
J73-Apr-03Settlement of Trade
J83-Apr-03Settlement of Trade
J931-Mar-03Month End Revaluation (Manual Update of MTM)

J1                  Trade Date

TradeIDPostDateB/PAccountCcyCcy AmountExc RateCcyBase AmountLine
FRX100125-Mar-03BFRX : Deals ReceivablesUSD1,435,000.001.749090SGD2,509,940.00J1a
FRX100125-Mar-03BFX Cash Clearing AccountUSD-1,435,000.001.749090SGD-2,509,940.00J1b

J2                  Trade Date

TradeIDPostDateB/PAccountCcyCcy AmountExc RateCcyBase AmountLine
FRX100125-Mar-03BFRX : Deals PayablesGBP-1,000,000.002.509940SGD-2,509,940.00J2a
FRX100125-Mar-03BFX Cash Clearing AccountGBP1,000,000.002.509940SGD2,509,940.00J2b

J3                  Month end revaluation

TradeIDPostDateB/PAccountCcyCcy AmountExc RateCcyBase AmountLine
FRX100131-Mar-03BFRX: Deals ReceivablesUSD0.000.000000SGD-24,811.15J3a
FRX100131-Mar-03PFX - Unrealised Losses - FX TradeUSD0.000.000000SGD24,811.15J3b

J4                  Month end revaluation

TradeIDPostDateB/PAccountCcyCcy AmountExc RateCcyBase AmountLine
FRX100131-Mar-03BFRX: Deals PayablesGBP0.000.000000SGD2,190.00J4a
FRX100131-Mar-03PFX - Unrealised Gains - FX TradeGBP0.000.000000SGD-2,190.00J4b

                                    Month End Revaluation

Trade ID CcyBook RateRate on M/EAmount
Profit/(Losses)
FRX1001USD1.7490901.7318001,435,000.00
-24,811.15
FRX1001GBP2.5099402.507750-1,000,000.00
-2,190.00
Net P/L
-22,621.15

MTM can also be updated manually in the system for a FX trade. If the MTM is manually updated, please see J9 for the journals generated.

J5                  Reversal of Month end revaluation

TradeIDPostDateB/PAccountCcyCcy AmountExc RateCcyBase AmountLine
FRX10011-Apr-03BFRX: Deals ReceivablesUSD0.000.000000SGD24,811.15J5a
FRX10011-Apr-03PFX - Unrealised Losses - FX TradeUSD0.000.000000SGD-24,811.15J5b

J6                  Reversal of Month end revaluation

TradeIDPostDateB/PAccountCcyCcy AmountExc RateCcyBase AmountLine
FRX10011-Apr-03BFRX: Deals ReceivablesGBP0.000.000000SGD-2,190.00J6a
FRX10011-Apr-03PFX - Unrealised Gains - FX TradeGBP0.000.000000SGD2,190.00J6b

J7                  Settlement of Trade

TradeIDPostDateB/PAccountCcyCcy AmountExc RateCcyBase AmountLine
FRX10013-Apr-03BCash at BankUSD1,435,000.001.719940SGD2,468,113.90J7a
FRX10013-Apr-03BFRX: Deals ReceivablesUSD-1,435,000.001.749090SGD-2,509,944.15J7b
FRX10013-Apr-03PFX - Unrealised Losses - FX TradeUSD0.001.000000SGD41,830.25J7c

J8                  Settlement of Trade

TradeIDPostDateB/PAccountCcyCcy AmountExc RateCcyBase AmountLine
FRX10013-Apr-03BCash at BankGBP-1,000,000.002.502920SGD-2,502,920.00J8a
FRX10013-Apr-03BFRX: Deals PayablesGBP1,000,000.002.509940SGD2,509,940.00J8b
FRX10013-Apr-03PFX - Unrealised Gains - FX TradeGBP0.001.000000SGD-7,020.00J8c

                                   Month End Revaluation

Trade ID CcyBook RateRate on M/EAmount
Profit/(Losses)
FRX1002USD1.7490901.7199401,435,000.00
-41,830.25
FRX1002GBP2.5099402.502920-1,000,000.00
7,020.00
Net P/L
-34,810.25

J9                  Month End Revaluation (Manual Update of MTM)

TradeIDPostDateB/PAccountCcyCcy AmountExc RateCcyBase AmountLine
FRX100131-Mar-03BFRX : Derivative Liability Fair ValueSGD-21,985.000.000000SGD-21,985.00J9a
FRX100131-Mar-03PFX - Unrealised Losses - FX TradeSGD21,985.000.000000SGD21,985.00J9b

Note J9b:           The MTM value as at 31-Mar-2003 is maintained manually at the Foreign Exchange screen.

EXCHANGE RATES

The following rates were used for illustration.

Spot Rate

DateUSD to SGDGBP to SGD
25-Mar-031.7490902.509940
31-Mar-031.7318002.507750
3-Apr-031.7199402.502920

*Rates used for calculation are in full precision. Illustrated rates are rounded to 6dp.

FREQUENTLY ASKED QUESTIONS

RELATED INFORMATION

Update FX MTM

CHANGE HISTORY

DateByChanges
28-Jul-2008CSCreation.
18-Oct-2016CasReformatted.
22-May-2017TSAdded journals for manual updating of FX MTM.
24-Apr-2020LTRe-formatting.
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