PURPOSE
To show illustration of foreign exchange swap base.
OVERVIEW
TRANSACTION DETAILS
| Accounting Base Ccy |
| SGD |
| Trade ID |
| Trade Date |
| VDate |
| Sell Currency |
| Buy Currency |
| Rate |
| Sell Amount |
| Buy Amount |
| Points |
Near Leg
| FRX1001 |
| 25-Mar-03 |
27-Mar-03 |
SGD |
USD |
| 1.710000 |
-1,710,000.00 |
1,000,000.00 |
0.000500 |
Far Leg
| FRX1002 |
| 25-Mar-03 |
3-Apr-03 |
USD |
SGD |
| 1.710500 |
-1,000,000.00 |
1,710,500.00 |
SUMMARY OF JOURNALS
| ID | Date | Description |
|---|---|---|
| J1 | 27-Mar-03 | Settlement of Trade |
| J2 | 27-Mar-03 | Settlement of Trade |
| J3 | 31-Mar-03 | Month end revaluation |
| J4 | 1-Apr-03 | Reversal of Month end revaluation |
| J5 | 3-Apr-03 | Settlement of Trade |
| J6 | 3-Apr-03 | Settlement of Trade |
J1 Settlement of Trade
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amount | Exc Rate | Ccy | Base Amount | Line |
|---|---|---|---|---|---|---|---|---|---|
| FRX1001 | 27-Mar-03 | B | FX Cash Clearing Account | USD | -1,000,000.00 | 1.717170 | SGD | -1,717,170.00 | J1a |
| FRX1001 | 27-Mar-03 | P | Cash at Bank | USD | 1,000,000.00 | 1.717170 | SGD | 1,717,170.00 | J1b |
J2 Settlement of Trade
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amount | Exc Rate | Ccy | Base Amount | Line |
|---|---|---|---|---|---|---|---|---|---|
| FRX1001 | 27-Mar-03 | B | FX Cash Clearing Account | SGD | 1,710,000.00 | 1.000000 | SGD | 1,710,000.00 | J2a |
| FRX1001 | 27-Mar-03 | P | Cash at Bank | SGD | -1,710,000.00 | 1.000000 | SGD | -1,710,000.00 | J2b |
J3 Month end revaluation
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amount | Exc Rate | Ccy | Base Amount | Line |
|---|---|---|---|---|---|---|---|---|---|
| FRX1002 | 31-Mar-03 | P | FX - Unrealised Losses - FX Trade | SGD | 21,300.00 | 1.000000 | SGD | 21,300.00 | J3a |
| FRX1002 | 31-Mar-03 | B | FRX:Derivative Liability Fair Value | SGD | -21,300.00 | 1.000000 | SGD | -21,300.00 | J3b |
Month End Revaluation
| Trade ID | Contract | ME Rate | Diff | Ccy | Amount | Gain/(Loss) | Rate to Base | Base Amount |
| FRX1002 | 1.710500 | 1.731800 | 0.021300 | USD | -1,000,000.00 | -21,300.00 | 1.000000 | -21,300.00 |
| Net P/L | -21,300.00 |
J4 Reversal of month end revaluation
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amount | Exc Rate | Ccy | Base Amount | Line |
|---|---|---|---|---|---|---|---|---|---|
| FRX1002 | 1-Apr-03 | P | FX - Unrealised Losses - FX Trade | SGD | -21,300.00 | 1.000000 | SGD | -21,300.00 | J4a |
| FRX1002 | 1-Apr-03 | B | FRX:Derivative Liability Fair Value | SGD | 21,300.00 | 1.000000 | SGD | 21,300.00 | J4b |
J5 Settlement of Trade
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amount | Exc Rate | Ccy | Base Amount | Line |
|---|---|---|---|---|---|---|---|---|---|
| FRX1002 | 3-Apr-03 | B | FX Cash Clearing Account | SGD | -1,710,500.00 | 1.000000 | SGD | -1,710,500.00 | J5a |
| FRX1002 | 3-Apr-03 | P | Cash at Bank | SGD | 1,710,500.00 | 1.000000 | SGD | 1,710,500.00 | J5b |
J6 Settlement of Trade
| TradeID | PostDate | B/P | Account | Ccy | Ccy Amount | Exc Rate | Ccy | Base Amount | Line |
|---|---|---|---|---|---|---|---|---|---|
| FRX1002 | 3-Apr-03 | B | FX Cash Clearing Account | USD | 1,000,000.00 | 1.719940 | SGD | 1,719,940.00 | J6a |
| FRX1002 | 3-Apr-03 | P | Cash at Bank | USD | -1,000,000.00 | 1.719940 | SGD | -1,719,940.00 | J6b |
EXCHANGE RATES
Our illustration assumes the company uses different daily exchange rates for accounting.
The following rates were used for this illustration.
Spot rate
| Date | USD/SGD |
| 27-Mar-03 | 1.717170 |
| 31-Mar-03 | 1.731800 |
| 3-Apr-03 | 1.719940 |
* round to 6 dp. Full precision used for calculation of average rates
FREQUENTLY ASKED QUESTIONS
RELATED INFORMATION
CHANGE HISTORY
| Date | By | Changes |
|---|---|---|
| 22-Jan-2008 | CS | Creation. |
| 20-Jun-2016 | RJ | Reformatted. |
| 23-Apr-2020 | LT | Re-formatting. |
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