Interest On Money Market Funds
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 |
